CHAPTER-01

Introduction
1.1 Preamble

Purpose
This manual has been compiled to standardize procedures
and have their summaries readily available for use in the
company’s construction business. It covers activities from
the time a construction job is awarded to the company,
planning and mobilization stages, scheduling execution and
monitoring of activities, interaction with the client, work
completion stage, demobilization and finally incorporation of
feedback from projects as they are completed.

1.1.2 Objective
Project Planning & Execution Manual has the following
objectives: -
• Standardize work practices and establish benchmarks for
performance measurement.
• Develop capability to operate internationally with a multi-
national task force.
1.1.3 Scope
This manual covers the planning, execution and progress
monitoring activities
of construction projects. Plant Services and EPC projects are
not covered in
this manual. Details related to Contract Administration and
Finance are
covered under separate manuals.
1.2 Overall Scheme
Each construction project has a defined scope of work,
defined start and finish dates, some working constraints and
a specified budget. All of the personnel who are going to be
assigned to the project may not have worked together. It is
on account of these challenges that project management
becomes difficult and complex. Therefore it is necessary to

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have well defined procedures and clearly spelled out
responsibilities that
are understood by all the persons assigned to the project. A
properly designed project

Management system enables timely response to

problems, delays, changes, and
obstacles that arise during the course of execution. It also
indicates opportunities that might arise enabling savings in
costs. Without proper project management it is quite likely
that excessive resources shall be utilized to meet the project
schedule resulting in cost overruns and depletion of
expected margins. The planning part of the project involves
deciding what is to be done, when, by whom and with what
resources. It is just as important to have a properly designed
system to maintain close observation of activities once the
construction gets underway. Constant vigilance is required
to find out what has actually been accomplished, what
remains to be done and whether resources are available to
do it in time. A properly designed project management
system is meant to organize the working and to identify
potential problems so that they can be communicated in
time to management. This enables proper corrective actions
to be taken.
Although this manual is only meant to cover the aspects of
planning,
execution and monitoring of progress a review of the
broader overall picture
has been included. Accordingly the overall sequence of
events and the flow of information from the time of
identification of opportunity, submission of the bid, winning
of the contract, planning, controlling the execution, till
completion is depicted in a flow chart.

The table 1-2 on the following page explains the actions to

be taken by the
individuals designated at each of the key assignments in the
overall scheme.
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The number in the extreme left column of the table identifies
the referred boxon the flow chart. Major activities that are to
be performed by the individuals designated to the
assignments are identified in the central column while the
salient outputs from one functionary to another are listed in
the right hand column. This table and the accompanying
flow diagrams are provided here to give the reader an
overview of the overall scheme. Individual activities and the
relevant form of the outputs are described and defined in
the corresponding chapters. Detailed responsibilities of the
individuals are included in the Job Descriptions that are
provided in Chapter 6 on Organization. The typical site
organization chart is included in that chapter as

Seria Department / Section / Process Output

l#

1 Business Development Proposal

Identify opportunities Evaluate
ITB
prospective customers Get pre-qualified Customer and
Get included in invitation to bid Competitors
Evaluate competition data
Enquiry
Synopsis
2 Proposal Business Area
Understand scope of work As submitted
Evaluate ITB bid.
Get clarifications ITB Level 3 plan,
Visit Site if possible to evaluate Mapping of BOQ
conditions and CCTRs.
Prepare and submit proposal CCTR wise
Decide winning strategy, get approvals summary
Submit Technical and Commercial of Man-hours
Proposal and
Quantities,
WBS, OBS,
Mobilization
Plan and Demob
plan. Budget
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 Rev 0,
Cash Flow,
wINBid reports
Correspondence
with customer
Draft contract
document
applicable
Quotation
received
3 Head Business Area Head Business
Negotiate (if required) Area Negotiate
Win and sign contract (if required)
Select Site Manager Win and sign
Form project team contract
Select Site
Manager
Form project
team
Project Team
Signed Contract
Documents
All documents
received from
proposals,
guidelines
on strategy to be
adopted

4 Project Team Business Area

Understand scope of work; identify key Head
points in Subcontracting
Contract to protect Company’s interest, strategy
Understand DESCON and customer Revised level 3
responsibility. plan
Analyze proposal working Proposal for
Compare final contract document with budget
Proposal revision if
Determine impact of any changes in the required.
above on 4.1 Revise WBS
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the project, and OBS if
Resource loading on level 3 plan required
Revise level 3 plan if required Review of
MP histograms at Supervisor level budget R
Prepare MRP
material and
consumables
Prepare pre
mobilization and
mobilization
plan
Assign
mobilization
incharge
Prepare project
specific
documentation
viz. HSE
plan, PQP, WPS
and get it
approved from
customer.
Get PQR done to
finalize WPS and
welding
consumables.
Configure
Project
Monitoring
Systems.
Arrange
inspection of
E&P and tools
and get
these certified
as required
under the
procedure.

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4.1 Project team Site Manager
Start mobilization activity Purchase Orders
Order deliverables after Customer’s
approval
wherever required under the contract

4.3 Project team

Configure project monitoring systems Configured
system
5 Site Manager
Review budget R 0 and prepare R 1 Review and
approve project specific method statements Get client
approvals for level 3 plan Approve overall resources
required for execution Finalize QC manual, WPS and
HSE plan
Review Technical Queries prior to issuance to
Customer for clarifications.
Customer
Method statements for approval Level 3 plan for
approval
6 Site Manager
Direct and coordinate construction activities at site
Ensure use of systems to monitor costs and progress
Approve revisions in Level 3 plan as per Latest Forecast
Achieve targeted invoice within costs Ensure timely
submission of invoices Ensure achievement of targeted
margins Manage cash flow Ensures that all extra work
is identified and billed Take remedial action to meet
project objectives
Customer Progress Invoices for payment
7.1a Planning and FEDC Manager
Oversee FEDC and Planning functions Review and
optimize / update Level 3 plan as per latest forecast
Highlight critical path and foresee bottlenecks
Analyses progress and efficiency reports Keeps track of
changes in BOQ and keeps it updated Prepares 3
month forecasts
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 Discipline Incharge
3 month and 4 week look ahead plans Targets Progress
analysis and comparison with plans Bottleneck
summary Efficiency reports

7.1b Planning Engineer

Generate revised rolling 3 month and 4 week look
ahead plans Identifies resource requirement for 3month
look ahead and 4 week look ahead plans
Monitor and analyze discipline wise progress, Update
level 3 plan
7.2 Planning and FEDC Manager
Keeps track of extra work Ensures that all extra work is
identified and billed.
Communicates with client regarding changes in scope
and gets approvals
Keeps contracts engineer updated on progress and
changes of scope
Supports contracts engineer in invoice generation
Customer
Intimation about extra work Technical queries
7.3 FEDC Engineer
Ensure that document control system is installed and
working properly
Ensures allocation of drawings to WBS/OBS Ensure that
BOQ/BM is taken off correctly and entered into PCS
Marking of Standard man-hours, CCTR and Supervisors
codes on drawings Prepare drawings for
abrication/erection. Prepares sketches for execution
when ever necessary and issue to execution team after
getting it approved. Facilitates Construction Manager in
preparation of rigging studies.
Discipline Incharges
Drawings for Fabrication and erection Drawing wise
BOM, BOQ and Resource requirement Allocation of
material for drawings
7.4 Planning and FEDC Manager
Supports site manager in revision of budget and cash
flow Receive data from Financial Controller for weekly
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 report Compile weekly Project Performance report
Monitoring of progress and comparison with contractual
commitments.
Site Manager
Bottleneck summary Efficiency reports Progress
analysis and comparison with plans Weekly Project
Performance report

7.5 FEDC Engineer

Receive Technical Clarification requests. If possible
provide clarifications from data and available
specifications. Otherwise consults site manager before
sending to Customer for clarification and communicates
response to all concerned. Facilitates in preparation of
project specific method statements.
Customer Technical Clarification requests
CM/Discipline In-charge
Discuss and distribute weekly plans to Discipline
Engineers Assignment of drawings to supervisors
Review and optimize resource utilization Guide
Discipline Engineers in breaking up 4 week look ahead
plan Prepare project specific method statements
Ensure that extra work is identified and reported for
invoicing
Discipline Engineer

Check work front availability on 04 week basis. Ensure

quality of work and minimization of wastage Monitor
efficiency and provide guidance to bring
it up to 1 Ensure that all relevant procedures are
available and followed
Identify extra work from contractual work scope Ensure
accurate reporting of work and correct posting of man-
hours into DSTS
Discipline Engineers

Weekly and Daily Targets Guidance on splitting 4 week

look ahead
Area Scheduler Weekly and Daily Targets
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 9 Area Scheduler

Prepares daily work plans from 4 week look ahead,

after confirming the work front for the week / day.
Interact with Discipline/Area Supervisors to plan future
work Plan daily jobs at supervisor level, viz. level 4
planning Print and distribute DSTS
Monitor daily progress Enter progress into DPMS
module Ensures booking of resources to correct CCTR
Print daily supervisor efficiency reports
Identify and report extra work Roll up area wise plans
on weekly basis
Discipline Supervisor Daily Schedule and Time Sheet
Information about material availability for drawings

Planning and FEDC Manager

Progress entered into DPMS Efficiency reports available
in system

Discipline Supervisor
Achieve progress targets with optimum resource use
Booking of resources to correct CCTR Quality work
Area Scheduler
Filled out DSTS showing progress achieved
I/C PP&A
Filled out DSTS showing man-hours utilization on CCTRS
IC PP & A
Ensure entry of CCTR wise man-hours from DSTS into
GDMS Compare DSTS hours with time card man-hours
of direct staff Correct time entries in time cards
Rationalize man-hours based on lower of the two
Prepare Payroll

Financial Controller
Area Scheduler Corrected CCTR wise man-hours
available in the system
Contracts Engineer
Receive progress figures from Planning & FEDC
Manager and compare with contractual ommitments
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 Estimating costs and revenue from extra work
Estimating cost to complete Preparation of invoices as
per progress Preparation of invoices for extra work
Compilation of data for claims Negotiate and award
subcontracts Handling of subcontracts
Financial Controller
Cost and financial forecasts Site Manager Invoices for
submission to customer
13 IC Procurement
Floating enquires for site procurement Evaluation of
quotes issuance of purchase orders, and entry into
system Follow up of POs, internal inspection of material
and shipment after proper crating. Ensure vendor
invoices are received and adjusted. Return of vendor
guarantees, if any.
Suppliers
Enquiries
Purchase Orders
I/C Stores
Purchase Order Copies
14 IC Stores
Using ACCPAC Icon module for raising of indents as per
MRP and all other requirements Entry of POs into
system Receiving material and entry into system
Arrange inspection of incoming material. Issuance of
material
Processing of material returns Ensuring accuracy of
inventory tracking customer supplied free issue
material in MMS module Inspection of free issue
material and generate a report as required. Receipt and
issuance of free issue material Reconciliation of all
materials in consultation with Central Material
Controller
Financial Controller
Availability of updated figures in system for the
following Cost of purchase orders issued Cost of
material in inventory Cost of materials issued
15 Financial Controller
Preparation of project analytical study Compilation of
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 figures for Weekly Project Performance report.
Recognizing the accruals. Track advances and
guarantees. Preparation of proposals for Budget
revisions Monitoring of cash flow Correct and timely
booking of incurred costs and revenue.
Amortization of expenses as per company policy.
Planning and FEDC Manager
figures for Weekly Project Performance report
Site Manager
Cost analysis and revenue forecasts
Business Area Head
Cost analysis and revenue forecasts
16 Site Manager
Review of Progress and Efficiency Corrective actions
Observations on Weekly Project Performance. Response
to clarifications
Set next week target Set targets for next three months
and organize
Resources Submission of progress reports to customer
in
agreed format Contractual correspondence with client
Business Area Head Progress reports
Head PMS Clarifications of observations
Customer Progress reports Invoices
17 Site Manager
Submission of invoices to client Contractual
correspondence
Approval of progress reports in client format
Customer Invoices Progress reports
18 Customer
Arrangement for timely delivery of Drawings and
Specifications
Intimation of supply of free issue materials
Planning and FEDC Manager
Drawings and Specifications Response to Technical
Clarifications
18.1 Customer
Authorization of extra work
Arranges payment against invoices
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 Make access available as per plan
Site Manager
Payment against invoices
19 Head PMS
Analysis of all ongoing projects and compilation of
reports for review
Request clarifications from Site Managers where
required
Analysis of project performance and preparation of
feedback to proposal on overall project estimation
norms
CEO and CFO
Projects Performance summary reports
Business Area Head
Observations on Projects Performance
Proposal Department
Feedback for revision of estimation norms

CHAPTER-02
Project Planning

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Project planning involves breaking down the entire project
into smaller
manageable activities, determining the durations,
interrelationship, and
resource requirements of each activity. Once this has been
completed then the
application of resources is scheduled in a planned manner.
Arrangements are
made to monitor progress and costs. When work has started
progress and
resource utilization are monitored closely. Corrective actions
are taken
wherever required in order to be able to meet the agreed
objectives for the
project.
This chapter covers the following topics:
• Planning techniques
• Work break down structure
• Organization breakdown structure
• Mapping of Work and Organization Break Down Structures
• Cost Centres and Mapping of Cost Centres with Bill of
Quantities
• Levels of plan
• Planning terms
2.1 Planning Techniques
2.1.1 Work Break down structure (WBS)
This is a convenient way of breaking down a long and
complex package into
work packages of smaller duration and complexity so that
the project becomes
cost effectively manageable and executable. A properly
planned WBS delivers
the following benefits
• The project can be planned systematically
• Resources can be effectively scheduled
• Work teams can be assigned responsibilities
• Costs and budget elements can be compared
While preparing the WBS client’s specified Scope of work
and BOQ are
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analyzed keeping in view applicable constraints. The
constraints could be in
the form of a fixed time schedule availability of staffing. The
projects
deliverables are then broken down over measurable and
verifiable tasks. Data
of the type of WBS used on earlier similar projects and the
acceptance and
performance criteria for the project are all considered in
coming up with a
recommendation. It must be borne in mind that the items in
the WBS should
be such that they can be individually scheduled, budgeted
and assigned to an
organizational unit.
The output of the WBS preparation process is a deliverables
oriented grouping
of project elements. It enables progress and cost data to be
summarized at
different levels of detail. The structure can be graphically
portrayed and is
based on hierarchy of work to be accomplished beginning
with the end
product at the top and subdividing in successive levels down
to individual
activities at the bottom.
In construction projects the division of the overall
construction work can start
on the basis of discipline and then proceed down into areas,
zones. Typical
WBS in DESCON environment is as follows:
1. Project
1.1 Construction
1.1.1 Discipline
1.1.1.1 Zone/Area
1.1.1.1.1 Cost Center/Activity
The WBS for the construction part can be graphically
represented as under
Plant Construction
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Discipline A Discipline B Discipline C
Area X
Area Y
Area Z
Activities P Q R S
2.1.2 Organization Breakdown Structure
OBS represents a project organization structure that
matches with WBS to
give effective control over the project. Typical OBS in
DESCON environment
is as follows:
1. Site Manager
1.1 Construction Manager
1.1.1 Discipline In-charge
1.1.1.1 Discipline Engineer
1.1.1.1.1 Discipline Supervisor
Please refer to Attachment 6.1- for a typical Site
Organization Chart.
2.1.3 Mapping of WBS on OBS
Mapping of WBS on OBS is a process of forming “Work
Packages” for each
chain of command in an organization for the successful
achievement of goals.
At Descon projects WBS are mapped with OBS as follows:
WBS OBS
Project Site Manager
Construction Construction Manager
Discipline Discipline In-charge
Zone/Area Discipline Engineer
Cost Center/Activity Discipline Supervisor
Please refer to Attachment 2.1 for an example of mapping
of WBS and OBS
2.1.4 Cost Center (CCTR) & Mapping of CCTR and BOQ
A Cost Center (CCTR) is the smallest measurable unit of
work / activity to
which costs can be booked. In Descon, standardized cost
centers have been
identified and listed for most of the construction activities.
These are used at
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the estimation stage and the same cost centers are used
during scheduling and monitoring of progress and for
assimilation of costs. Some examples are given here
CCTR Description CCTR
Clearing, Grubbing & Excavation 21120
Backfilling & Compaction 21130
Stationary Equipment Installation 22210
CS Pipe Fabrication 23120
Cable Laying Works 25510
Field Instruments Installation 25620
During proposal stage the quantity of each BOQ item is
distributed over
standard cost centers. This facilitates preparing a CCTR wise
summary for
quantities and man-hours. It may however be noted that
there could be more
than one cost center in one BOQ item e.g. the customer BOQ
description
‘Earth Works’ may be covered in cost centers 21120 and
21130. In this case
the BOQ item quantity shall have to be split over number of
Descon’s
standard cost centers. Similarly some of the Descon cost
centers may be
distributed over a number of customer BOQ items.
Proposal department provides the Cost Centers used on the
project along with the estimated quantities and man-hours
against each cost center. (See
Attachment 2.2). These are subsequently referred to as
“Budgeted Quantities” and “Planned Man-hours”
respectively.

2.2 Developing the master plan

2.2.1 Identifying / Defining Activities
During the process of preparing the work break down
structure the overall
scope has been broken down into individual activities.
Activities are of many types but the main type is a task,
which has the following characteristics.
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• Consumes time
• Consumes resources
• Has a definite start and finish
• Is assignable
• Is measurable
Other types of activities are milestones which represent an
event or a phase.
2.2.2 Allocating Duration
The next phase of the overall scheduling process is
allocation of duration to
each activity. Duration may be allocated on the basis of
nature/quantum of
work, availability of resources and the past experience.
Duration of activities
may be in hours, days, weeks or months depending upon the
nature of the
activities and the overall duration of the entire project.
Adequate provisions
should be kept for contingencies and the unforeseen that
may delay the
activity.
2.2.3 Assigning Relationships
The activities should be linked together in a logical way as
these are supposed to be executed. These relationships are
to be decided by the Planning Team.The four possible
relationships may be as follows
• Finish-to-Start relationship i.e. the successor activity
(dependent activity)
can only start after the predecessor activity (independent
activity) is
completed.
• Start-to-Start relationship i.e. the successor activity
(dependent activity)
can only start when the predecessor activity (independent
activity) has
started.
• Finish-to-Finish relationship i.e. the successor activity
(dependent
activity) can only finish when the predecessor activity
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(independent
activity) has finished.
• Start-to-Finish relationship i.e. the successor activity
(dependent activity)
can only finish when the predecessor activity (independent
activity) is
started.
2.2.4 Scheduling
Scheduled start and finish dates for each activity and
ultimately the entire
project are calculated based on the estimated duration of
the activities, the
relationships between the activities and any applicable
constraint. This process is done in two steps. In the first step
called Forward Pass early start and finish dates of each
activity are calculated starting from the project start date. In
the next step late start and finish dates of each activity are
calculated starting from the project finish date. The
difference between early start and late start or early finish
and late finish is known as Float of that activity. It’s the
margin of delay for an activity without delaying its successor
activity.
If the completion date of the project goes beyond the
contractual hand-over
date then the whole schedule needs to be re-visited.
Squeezing the schedule may require one or all of the
following techniques
• Reducing duration of activities by deploying extra
resources or working
extended hours where possible physically and logically.
• Redefining relationships between activities. Look for
relationships that can
be converted from Finish-to Start to Start-to-Start with some
lag.
• Drag back activities that can practically be started earlier.
• Locate activities that can be performed in parallel to other
activities.
Scheduling is an iterative process. It requires a lot of
brainstorming. Various
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options are prepared and discussed among the Project
planning team and the
best option is selected.
2.2.5 Determining Critical Path
Critical path is the continuous chain of activities with the
longest accumulative duration and nil Total Float. It
determines the project duration.
The activities on the critical path should be re-checked
critically whether these are genuinely critical or have
become critical due to some error in logical relationships of
these activities with others.
Extra care should be given to activities that fall on critical
path, as delay in any of these will result in delay of the
whole project. Forward planning should be done to make
sure nothing hinders critical activities. Resource requirement
for critical activities should be met on priority.
For a graphical representation of critical path
2.2.6 Resource Loading
Usually resources must be consumed to complete an
activity. The resources
required may include manpower, tools and plants, cranes
and heavy
machinery, direct materials, consumables, special jigs and
fixtures etc.
Resource loading is to be carried out by the proposals
department using their
estimation software Win Bid. In Win Bid each BOQ item is
assigned a cost
center and required resources are also assigned. The data is
then exported to
Primavera or P3 from Win Bid on any of the following basis:
i. Area as activities
ii. BOQ items as activities
iii. Area / CCTR as activities
(Usually the basis used is Area / CCTR as activities.)
Following resource data can also be exported to P3 from Win
Bid:
i. Direct man-hours
ii. Craft wise man-hour breakup
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iii. Direct material
iv. Direct Consumables
v. Equipment (from Packages)
After importation of data from Win Bid an overall
requirement of resources
over the entire duration of the project is determined. If this
requirement is not possible to be met with available
resources then the schedule needs to be revisited.One or all
of the following may help in this situation
• Look for activities that are not critical but require more
resources.
Increasing duration of such activities will result in decrease
in resource
requirement.
• Look for activities with large free floats (margins for delay).
Delaying
such activities will not disturb end date of the project but will
reduce
resource requirements.
• Look for alternative cheaper resources. Chain blocks may
be used in place
of crane in certain cases. Concrete mixers may be used in
place of
Batching Plant or Concrete hoists may be used in place of
concrete pumps
for small concrete pouring.
• Look for the possibilities of getting resources arranged
from external
sources.
2.2.7 Consolidated Resource Requirement
After resources allocation to each activity is finalized, a time
based
requirement of each resource is generated for the entire
project life span. This gives the consolidated requirement of
each resource for each time interval. Abrupt peaks followed
by a trough in the histogram may be observed. That means
additional hiring of that resource for the peak period and
laying-off during the lean period and re-hiring when the next
peak is reached which is not practicable. The manpower
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resource requirement should be balanced to the possible
extent such that there should be a gradual build up of
manpower till the peak is reached. This manpower should be
maintained during the peak period. Gradual reduction of
manpower should be done as the project proceeds for its
closure.
2.2.8 Smoothening of Resource Requirement
Ideally, resource requirement should be a smooth curve, i.e.
gradual increase
till it reaches its peak, maintains peak for required period
and then gradually
decreases till project is complete.
There are ways and means to smoothen resource
requirement to the possible
extent. The activities should be rescheduled, keeping the
logic intact, so that
peaks should be trimmed off and more resource requirement
is generated to
fill up the troughs. Employing the following techniques can
help a lot in doing this
2.2.9 Trimming off a peak
• Look for activities that fall in that period especially the one
starting in the
peak period or the one finishing in that period.
• Among these activities, concentrate more on the activities
with large
requirement for that resource and with bigger free floats.
• Try to drag such activities, keeping the logic intact, out of
the peak region
and into the trough region either by delaying the start, such
that the activity
starts after the peak or finish before that period. It is
generally easier to
take such activities out of the peak requirement period
without upsetting
the schedule.
• Increase the duration of activities with large requirement
of that resource
and with large free float lying in the peak period.
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• By assigning suitable Resource Distribution Curve to that
activity. It is
however important that all resources assigned to that
activity should have
the same Resource Distribution Curve. Also this can only be
useful for
activities with duration long enough to cover at least one
peak and one
trough.
2.2.10 Filling up a trough
• Look for the activities that are either finishing immediately
before the
trough period or starting immediately after that period.
• Among these activities, concentrate more on the activities
with large
requirement for that resource and with bigger free floats.
• Try to drag such activities, keeping the logic intact, into
the trough period
either by delaying its finish date or by starting it early.
• Look for the activities that have large resource
requirement and either
finish immediately before the trough period or start
immediately after that
period. It is generally easier to take such activities into the
trough period
without much disturbing the schedule.
• By assigning suitable Resource Distribution Curve to that
activity. But all
resources assigned to that activity should have the same
Resource
Distribution Curve. Also this can only be useful for activities
with duration
long enough to cover at least one peak and one trough.
Important Note: It is practically very difficult to smooth out
all the resources
as smoothening of one resource may disturb some other
resource. So it is
recommended that first priority during smoothening process
should be given
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to critical resources like cranes, special crafts etc. and
second priority should
be given to less critical resources like most of materials and
consumables.
2.2.11 Assigning Responsibility
Determining responsibility for each activity is critical to any
scheduling effort,since any construction project involves
bringing together many crafts,
subcontractors, suppliers and others to attain project
completion. Activities
should be defined so that the responsibility for activity
completion is clear and assignable to a single party. If the
activity is to be completed by the
contractor's own force then it should be assigned to a proper
supervisor. If the activity is to be completed by the
subcontractor or the vendor, responsibility should be
assigned accordingly.
2.3 Levels of Plan
There are various levels of planning depending upon the
extent to which the
activities have been broken down and the details provided
therein.
In DESCON generally four levels of plans are prepared.
Level - 1 Plan
This is the basic contractual plan that defines start and end
dates for each of
the major activities like design, procurement and
construction.
Level - 2 Plan
In this level, the discipline-wise schedule for each of the
above major
activities is prepared. For example the schedule for civil,
mechanical and E&I construction activities is defined
separately.
Level - 3 Plan
In this level, the level – 2 plan is broken down into various
Zones/Areas. The activities of Level – 2 plan are further
divided into smaller activities (up-to Cost Centers level) and
schedule for each Cost center is provided. For
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example Mechanical discipline is further broken down to
rotary equipment,
stationary equipment, CS piping fabrication etc.
Level - 4 Plan
This plan is prepared at site. In this plan the activities of the
level – 3 plan are broken down to Drawing/Isometric level. In
Descon working this exercise is done at supervisor level.
2.4 Planning terms
For the purpose of explanation the terms used in planning
are arranged here in their logical sequence rather than
alphabetically.

Activity or Task
The tasks that have to be accomplished in order to complete
the project.
Predecessor Activity
The activity that effects start or finish dates of other
activities (Successor
activities).
Successor Activity
The activity for which start or finish dates are dependent on
other activities
(Predecessor activities).
Lag
Lag staggers or delays the relationship of one activity
(predecessor) to another(successor).
Constraints
Constraints are ground realities that overrule the logical
start and finish time of the activity. For example, a certain
piece of equipment will be received on, say, 25th of March.
That equipment’s erection activity cannot be started
Before 26th of March irrespective of the fact that the
foundation will be ready by 15th of March.
So we will simply put a constraint to this activity that it
cannot start before
26th of March. Similarly concreting work cannot be easily
done in winter
months in regions where temperature goes below freezing
during winter.
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Various types of constraints can be used but most commonly
used are as
follows
• Start No Earlier Than - This type of constraint is applied to
restrict that
activity to start before a certain date.
• Start No Later Than - This type of constraint is applied to
restrict that
activity from starting beyond a certain date.
• Finish No Earlier Than - This type of constraint is applied to
restrict that
activity to finish before a certain date.
• Finish No Later Than - This type of constraint is applied to
restrict that
activity to finish beyond a certain date.
• Start On - To impose a compulsory start date to that
activity.
• Finish On - To impose a compulsory finish date to that
activity.
Early Start
The earliest possible time at which the activity can be
started.
Late Start
The latest possible time an activity can be started without
delaying the end
date of the project.
Early Finish
The earliest possible time at which an activity can be
finished.
Late Finish
The latest possible time at which an activity can be finished
without delaying
the end date of the project.
Free float
It’s the margin of delay for an activity without delaying its
successor activity.
Total Float
It’s the margin of delay for an activity or a chain of activity
without delaying
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the project.
Scheduling
The process of calculating start and end dates of the
activities.
Forward Pass
The process of calculating start and finish dates of each
activity starting from the project start date. This process
generates early start and early finish dates for each activity.
Backward Pass
The process of calculating start and finish dates of each
activity starting from the project finish date. This process
generates late start and late finish dates for each activity.
Data date
The point in time that separates actual (historical) data from
future (scheduled) data.
Man-hours
It is yardstick for measurement of effort. For example, 4
Man-hour will mean any of the following:
� 1 man working for 4 hours
� 4 men working for 1 hour
Standard Man-hours
Estimated effort per unit required to perform a job in terms
of man-hours.
Earned Man-hours
It is amount of work executed in terms of standard man-
hours.
Project / Budgeted Man-hours
Total number of man-hours required to execute a project.
Actual Man-hours
It is the amount of man-hours actually utilized to execute
work.
Latest Forecast Plan
Revised plan showing expected dates for balance activities
at certain point in
time during project life span.
Original (Base) Plan
A plan showing all activities as foreseen at start of the
project.
Efficiency
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It is the ratio of earned man-hours to actual man-hours.
Productivity
It is number of work units produced per man-hour spent.
Cost at Completion
The expected total cost at completion of an activity or a
project.
Budgeted Cost
Total estimated cost approved for execution of a project.
Resource
Anything that is required to perform an activity is called a
resource. A
resource can be manpower, equipment or material.
Critical Activity
An activity that has potential of delaying a project is called a
critical activity.
Critical Path
Chain of critical activities that has potential of delaying a
project is called
Critical Path. Such activities determine project duration.
Critical path Method (CPM)
A network analysis technique used to predict project
duration, by analyzing
which sequence of activities (which path) has the least
amount of scheduling
flexibility (the least amount of float).
Progress Evaluation and Review Technique (PERT)
An event oriented network analysis technique used to
estimate project duration
when there is a higher degree of uncertainty with the
individual activity
duration estimates. PERT applies the Critical path method to
a weighted
average duration estimates.
Gantt Chart
A graphic display of schedule-related information listing
project elements on
left side of the chart, dates across the top and activity
durations are shown as
date-placed horizontal bars. It is also known as Bar Chart.
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Work Break down structure (WBS)
WBS represents how total job is broken down into sub
activities like
disciplines and cost centers.
Organization Breakdown Structure
OBS represents project organization that matches with WBS
to give effective control over the project.

Cost Center
A Cost Center is the lowest identifiable/measurable activity
to which costs
incurred can be booked.
Direct Cost
Costs that can be clearly attributed to the activity
performed. These costs are
dependent on quantity of the work performed.
Indirect Cost
Costs that cannot be clearly attributed to specific activity.
These costs are
incurred irrespective of the quantity of the work performed.
1) Mapping of OBS and WBS Attachment 2.1
2) List of CCTR with quantities Attachment 2.2
3) Activity Relationship Attachment 2.3a
4) Activity Relationship Attachment 2.3b
5) Activity Relationship Attachment 2.3c
6) Activity Relationship Attachment 2.3d

Page 28
 CHAPTER-03
Project Management Systems used in
Descon
3.1 Primavera Project Planner (P3)
Primavera Project Planner is an Off-the-Shelf package meant
for planning and monitoring purposes on small, medium and
large-scale projects.
In Descon it is used for developing and monitoring project
schedule. This
schedule (Generally known as Level-III plan includes
Discipline, Zone, Area
and Cost Centers (as activities), craftwise resources, direct
materials and
consumables, definition of Work Break Down Structure,
Organizational Break down Structure and their relationships.
It is used right from the proposal stage in developing the
level 1, 2 and 3 plans. Then it is used for scheduling of
activities by importing data into it from The WINBID
estimation software. In the pre-mobilization stage it is used
for revising the level 3 plan and for drawing up the 3 month
and 4 week look ahead plans. The allocation of resources
and their smoothing is carried out in P3. The software is
used for printing of manpower histograms. It allows the user
to view the network in either bar chart form or as a PERT
diagram. During the project execution phase it is used for
updating the project master schedule and for generating the
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3 month and 4 week look ahead plans.
For further details please refer to the Primavera Planning
and Control Guide.

3.2 PCS
Project Control System or PCS is in-house developed
software designed to
monitor progress and efficiencies during the project
execution phase. It
consists of the following modules:
• DCS - Document Control System
• DPMS - Descon Project Monitoring Systems
• MMS - Materials Management System
• ITS - Inspection and Test Solutions
• Bottlenecks
• Test Packs
3.2.1 DCS (Document Control System)
DCS is an important part of PCS. As the name suggests, DCS
is aimed at
exercising effective document control at project sites. The
target users of the
system are document controllers. Main features of DCS are
efficient receipt,
issuance, retrieval, status and revision management of
documents. DCS is
primarily meant for external documents, i.e. from client or
consultant, but can also be easily extended to cater for
internal documents using intelligent coding structure. In
contrast to routine document control, this DCS module forms
a very important part of an integrated project management
environment. The information available in the DCS module is
shared by other modules of PCS –DPMS, ITS, & MMS.
However this information sharing is one way only: DCS does
not use information of the other systems. The usual mode of
inputting information in the system is manual entry, but in
some cases information can be electronically input in the
system. The rich reporting capabilities of DCS help
document controller keep track of different information
related to drawings. Reports that can be generated through
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DCS are:
• Transmittal wise receipt/issuance: It lists all receipts and
issues, and these
can be filtered for transmittal number, duration, received,
issued, or both.
They can be further filtered for Area in charge, supervisor,
location, and
test pack. The report can also filter for superseded or latest.
The report also
includes MCN (Material Control Number) and Test Pack
numbers that
have been entered in different modules.
• Drawing wise ledger: This report shows receiving and
issuance record.
• Drawings to be issued: Indicates when new revisions of
earlier issued
drawings are received.
• Drawings status: It gives a full summary and can show if
different versions
of a drawing are in use in different modules,
• QS analysis: It indicates assignment of drawings to each
QS
3.2.2 DPMS (Descon Progress Monitoring System)
DPMS holds a central position in Descon’s integrated project
management
Environment, and is used to schedule the work and to
monitor projects on daily basis. The target audience of the
DPMS is planning and FEDC managers, construction
managers, discipline incharges, discipline engineers,
planning engineers, area schedulers and quantity surveyors.
The main features of DPMS are drawing and cost center wise
BOQ entry, level 4 planning, generation of DSTSs, and
subsequent progress entry at supervisor level. Original and
latest forecast plans of a project, and actual man-hours from
GDMS are imported into DPMS. They form the basis of
progress and efficiency monitoring in DPMS. Other inputs of
the system comprise documents registered in DCS,
materials received in MMS, material consumption in ACCPAC
IC and inspection classes as defined in ITS. DPMS compares
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actual progress for a period with corresponding planned
values as per the plans, and provides many useful reports
that show the status of the project team on different project
performance parameters. The most sought after and
frequently used reports are project top sheet, man-hour
analysis reports and material and consumable analysis
report which are to be submitted to B. A. and H.O. on weekly
basis by the project site team. Apart from these reports,
DPMS provides outputs to other systems, these systems
include ITS, P3 and ACCPAC.Reports that can be generated
from DPMS are:
• Work front availability status: The summary report shows
status of drawing wise material availability and issuance.
Detailed report shows the total quantity available under
“client issued” and also the quantity under “site issued”
• DSTS: This is the Daily Schedule and Time Sheet for each
supervisor.
• Drawing wise progress summary: It shows earned quantity
against individual steps and total for the CCTR.
• Incharge/supervisor wise efficiency.
• Consumable/material analysis.
• Report to update Primavera project.
• Man-hour analysis: It provides discipline wise comparison
of original and latest figures of quantities and budgeted
man-hours. It shows comparison of planned and earned
quantities as well as planned, earned and actual man-hours
and calculates man-hours per unit efficiency.
• Project top sheet: It compares progress in terms of
planned original, latest forecast and actual percentages. The
report also shows comparison of original budgeted, latest
forecast and actual man-hours with earned man-hours.
These tabulations are available discipline wise as well as
overall with efficiency calculation and S curve.
• Client stock availability.
3.2.3 Materials Management System (MMS)
The main purpose of MMS is to handle all transactions
related to client/free issue material. The intended users of
MMS are storekeepers in the Client Material Warehouse. The
major input of the system is the entry of BOM for
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Each drawing entered into DCS. Activities that require use of
client-supplied
Materials are planned in DPMS according to the entry of BOM
status in the
MMS module.
Reports that can be produced from MMS are:
• Drawing material status: It shows quantity required, issued
and reserved,
• Isometric/drawing wise stock: It shows quantity required
along with receipts and issues,
• Item wise receipts/issue: It shows quantity required and
receipts and issues for this item.
• Item wise stock: It shows quantity required, received,
issued, returned and present stock.
• Item wise ledger: It shows record of all transactions
indicating stock after each receipt and issuance.
• Shipment detail.
• Over issuance.
• Shipment wise work front detail: It indicates required,
issued, reserved,
short, expected date of arrival and shipment quantity
reserved.
• Drawing wise quantity and issues.
3.2.4 ITS (Inspection and Test Solutions)
Inspection and Test Solution is primarily designed to control
the activities in
Which inspection and testing is involved. The target users of
the system are
Quality control inspectors. The features of the system are
inspection progress and monitoring; inspection activities
scheduling and performance control. ITS is prompted
automatically when the progress entered in DPMS reaches a
stage where inspection requirement have been specified.
Like wise when test is complete and it is entered in ITS,
DPMS is prompted. The main output of ITS are Statistical
Analysis, Production reports, and Comparison reports.
Reports that can be produced from ITS are:
• Welders’ Progress Detail: This report shows the welder’s
performance.
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Overall progress is shown in term of dia inches and is
verified by QA/QC department.
• Welders’ Progress Summary: The objective of this report is
to view welders’ efficiency during a specified period of time.
Efficiency is calculated as diameter inch welded per day.
Report shows diameter inches earned, number of working
days and diameter inch welded per day.
• Welders’ Qualification: This report is produced to visually
check the qualification of all the welders on a process for a
specific year. Mobilization and Demobilization dates are also
listed in this report.
• Outstanding Repairs: This report is produced to know the
status of pending repair work. Supervisor, drawing, welder,
report number and repair detailed information is also listed
with each repair.
• Pending RT Status: This report is produced to view balance
RT work of NDE Contractor as requested by QA/QC.
• Welder Wise Statistical Analysis: This report shows the
work done by a welder or a pair of welders with repair
information under an inspection extent for a specific period
of time.
• Drawing Wise Statistical Analysis: This report shows the
work done under a drawing with information of the
inspection extent for a specific period of time.
• Generation of Check advice for inspections.
• Production Report - Radiographic Test Status: The object of
this report is to view the detailed information of executed
radiography test(s) and results.
• Production Report - Inspection Activity Wise Progress
Report: The primary purpose of this report is to check the
Inspection Activity progress status. This report covers all the
disciplines.
• Welding Production Supervisor Wise: This report monitors
the supervisor performance in term of diameter inches
welded during specific period of time.
• Welder Repair % age based on RT: The primary purpose of
this report is to view the %age repair on joints and %age of
film on repair performed by welder(s) during a specific
period of time.
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• Inspection Summary: The primary purpose of this report is
to view the entire inspection information at a glance. In the
report criteria you can also have the option to report on
entire test pack in a single selection.
• RT Films Status: This report gives the status of RT Film
usage during a specific period of time. This report is also
used to compute the payment of NDE contractor.
• Project Joint Efficiency: This report shows the overall
picture of inspection and their results in the project.
• Repair Type Wise Comparison: The primary purpose of this
report is to view the occurrence of all types of repairs in the
project. This report also distinguishes the mostly occurred
repair.
• Welder Wise Repair %age: This report shows percentage of
repair type of welder against each month.
3.2.5 Bottlenecks
This system enables its users to book major bottlenecks in a
project. When a bottleneck is observed it is entered in the
system, and it is used to keep track of the factors
responsible for the bottleneck, incharge’s and client’s
comments thereupon, remedial actions taken, effects of the
bottleneck, etc. The report that is produced from this system
is
• Bottlenecks Summary: This reports shows the information
for a reported problem. It includes the name of the CCTR
and phylum at which the problem has occurred, the
comments of the in charges if any, any action taken on the
problem, identification that the problem is due to Client or is
due to DESCON, if there are any client’s comments on the
problem and in which category this problem lies.
3.2.6 Test packs
Test pack is used to divide large network of interconnected
pipes into small manageable parts to facilitate testing of the
parts. Test packs are made necessarily for a process system
having common operating and testing parameters. Test
Packs are prepared as early as possible containing a number
of drawings related to a system or for part of the system
boundary keeping in view its handling during testing or as
required by the commissioning team.
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This module helps in tracking the progress status of
inspection within a Test Pack on the drawings. It also tracks
the movement of test packs. This module is connected with
the ITS module and the Inspection Summary report contains
a filter for Test Pack which enables a user to view the
Inspection Status with in a Test Pack. Following reports are
available in the Test Pack module
• Test Pack Summary: This report shows the test pack
movement control summary.
• Test Pack Status Report: This report shows the status of
the activities that are to be conducted for the Test Packs. It
shows the completion dates of the activities that have been
finished.
3.3 Gainful Deployment of Manpower System (GDMS)
Gainful deployment of manpower system is basically
designed to ensure that manpower is being efficiently
deployed. The system does not arrange deployment by itself
but helps in monitoring the efficiency of its utilization. It is
operated by the timekeeper at the site. Particulars of all the
site-based staff are fed into GDMS. This includes their terms
and conditions from the point of view of salary
administration. Daily staff attendance from DSTS showing
cost center wise allocation of man-hours is fed into it. The
daily time card entries for the staff are also keyed in and
compared with the DSTS attendance to come to a figure of
the actual hours to be paid to the individual. The system
provides electronic output to DSTS in terms of man-hours
booked to each CCTR. These values are then compared in
DSTS with the earned man-hours achieved to determine the
efficiency of utilization of manpower with each supervisor.
For the purpose of Payroll it provides complete figures for
each direct employee deployed at site. The reports that can
be generated from the system are listed below:
• Man-hour reports
• Category wise Man-hour summary
• Craft & CCTR wise Man-hour summary
• Payroll related reports
• Journal voucher for salary
• Social security Contribution report
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GDMS Flow Chart is attached
For details of system operation refer to the GDMS Manual
3.4 Gainful Deployment of Equipment System (GDES)
GDES is designed to control equipment cost and productivity
by gainful deployment of equipment. Logbooks are
maintained for each piece of equipment. The number of
hours the equipment worked on various Cost Centers is
noted in the log book. This data is then fed into GDES on
daily basis. The system compiles data and generates Cost
Center wise equipment cost booking reports. These reports
help site management team to control equipment
deployment. Salient reports produced from this system are
• Monthly equipment deployment and POL consumption
• Equipment deployment plan
• Equipment maintenance schedule
• Equipment Utilization CCTR wise
• Equipment efficiency report
• Equipment wise maintenance cost
• Equipment rent charging report
• CCTR wise equipment utilization hours ratio
3.5 SMART (System for Material Acquisition Retrieval
and
Transfer)
SMART is an in-house developed software used for
Procurement and Material
Management of Descon Supplied Material and Consumables.
This software consists of four modules ITEM CODING, MRP or
INDENT,
PROCURMENT MANAGEMENT SYSTEM (PMS) and INVENTORY
CONTROL (ICON). The last module is not being used. Brief
Introduction of these modules is given below.
3.5.1 Item Coding:
The Item coding module is used for maintaining a data base
of complete descriptions of all material to be used on the
project. Its significant capabilities are.
• Flexible coding structure.
• Scheme Association at any group level.
• Defining attributes catalog.
• Accommodating up to 40 characters numeric code.
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• Description driven selection of code.
• Defining different groups, sub groups, material type, and
item type on the basis of acquired information, which
classifies different items
(Consumable's, Fixed assets etc.).
3.5.2 MRP and Indent:
MRP module is to assist in generating requirements, which
are to be used in the Project. Information on the requirement
of material from the proposal working is used in preparing
the MRP. This classifies the month wise consumption of all
material and consumables. After approval these
requirements are transferred into the PMS module and
procured. Standard features includes:
• Indent Main
• Indent Viewer
3.5.3 PMS (Procurement Management System):
The PMS Module caters for:
• Requirements Status (Initiated from INDENT/MRP)
• Enquiry Management.
• Quotation Management.
• Comparative Statement Preparation.
• Purchase order (Split order vendor wise, Change order,
Repeat order).
The Vendor Management system is also a part of PMS. It
facilitates addition, modification, and deletion of vendors
from the system. Allows paperless integration of supplier
performance, history measurement, supplier management
and tracking / tracing.
3.6 ACCPAC
ACCPAC is an off-the-shelf package consisting of various
modules to perform different financial functions.
ACCPAC consists of the following modules:
AP-Accounts Payable
AR-Accounts Receivable
GL-General Ledger
JC-Project Accounting, used for job costing
PO-Purchase Order It is used for receiving information on
purchase orders issued in SMART IC-Inventory Control It is
being used for all transactions in the Descon Material Store
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SM-System Manager for System Administration and error
tracking These modules are described in detail in the
Financial manual.
3.7 System integration
For most of the systems, to integrate them with each other,
Electronic Import and Export routines are used. For example,
the Actual Man hours entered in
GDMS are exported from GDMS as a text file. The same text
file is imported in Process. Likewise Process is integrated
with P3 using the same technique and the Level-III plan are
imported into Process as a text file.
Process is also capable of importing BOQ, BOM, and Field
Change
Requirements in the BOM, Client Stock, and Consumable
data from
ACCPAC-IC.
1) DCS Flow Chart Attachment 3.1
2) DPMS Flow Chart Attachment 3.2
3) MMS Flow Chart Attachment 3.3
4) ITS Flow Chart Attachment 3.4

Page 39
 CHAPTER-04
Pre-mobilization Planning
For a project to progress satisfactorily in its earlier phases it
is necessary to start the planning activities as early as
possible. It is desirable to have a period of three to four
months for the initial planning before actual mobilization to
site. This period of pre-mobilization starts from the time
when assessment of interaction with the client indicates that
there is a strong likelihood of the contract being awarded to
Descon. The individual pre mobilization activities are
described in the following paragraphs. Please refer to
Attachment 4.1 flow chart for pre-mobilization planning

4.1 Contract Award

After evaluation of bids it is usual for the client to shortlist
the contractor for awarding the job and to issue a Letter of
Acceptance (LOA) or Letter of Intent (LOI) to the contractor.
This letter is advance intimation to the selected contractor of
the customer’s intention to award the project as per the
“Conditions of the Contract”. It may be addressed to the
Proposal Manager,
Head Business Development or the Head of the relevant
Business Area. The recipient acknowledges receipt of
LOI/LOA. Most projects are to be carried out against tight
time schedules and this practice of issuing the LOI gives
advance notice to the contractor to start preliminary
planning in order to reduce the reaction time that would be
Page 40
required after award of the contract. It enables the
contractor to start early mobilization of resources that would
be required to carry out the project.
After issuance of the letter of intent or award of the work
and before signing of the contract, the Proposal Manager
ensures that any variations between the contract and the
tender requirements are resolved and documented. The
Contract Document is thoroughly reviewed by the Proposal
Manager before it is signed. After the review, Proposal
Manager or any other person nominated by the Executive
Management signs the contract on behalf of the Company.
Contract agreement normally includes
• Letter of Acceptance and Letter of Intent (whichever
applicable)
• The Tender
• Conditions of Contract
• Specifications
• Drawings
• Bill of Quantities
• Minutes of Pre-award meeting with client
• Project Master Schedule
• Other such documents that are intended to form the
contract.
4.2 Selection of Site Manager and Core Team
Although it is desirable that the Proposal Manager be
subsequently assigned as the Site Manager / Project
Manager / Project Sponsor for the project, this may not
always be possible on account of other requirements within
the company. In case the Proposal Manager is not
nominated as the Site Manager, he hands over a copy of the
contract, together with all the relevant documents to the
Business Area Head or the person authorized by the BA
Head to receive them. Please refer Attachment 4.2 list of
documents to be provided by
Proposal to BA.
The Business Area head in consultation with Head HRD and
other BA Heads decide the person who is to be assigned as
the Site Manager for the project.
The person selected for this assignment has to be
Page 41
technically capable for understanding the project and of
leading the project team in achieving the project objectives
in a safe manner, within the agreed budget. He also has to
be familiar with the company’s procedures and project
management systems. Once the Site Manager has been
selected, the Head BA in consultation with him select the
other members of the Core Team for the project. These
would be the Planning and FEDC Manager, Construction
Manager and/or the main
Discipline In-charges. These individuals could be selected
from the resources available within the company or from
outside.
4.3 Gather Core team and start training
As mobilization to site takes time, the available facilities
within the company’s offices are utilized and members of the
core team are located there to start their familiarization with
the project. During this phase the head PMS department
provides stewardship to the core team in pre-mobilization
activities. The Site Manager and Head HRD select individuals
for assignments as Planning Engineer, FEDC Engineer, I/C
QC, I/C P&A, I/C E&P, I/C Stores, and Financial Controller.
They are included in the team as soon as they become
available. In case some individuals are inducted from outside
the company or are going to be assigned to functions that
they have not performed before, then they are given the
necessary training. PMS arranges this training with the
support of the relevant BSD.
4.4 Understand scope of work,
The members of the core team start review of the complete
set of documents that have been received from BA head.
During this review they get a thorough understanding of the
overall scope of work. Descon and Client responsibilities are
also identified and clearly understood. If any clarifications
are required in this regard the Proposal Department is
contacted and if the issue is not resolved then the Client is
contacted. Assumptions made about the clients work permit
procedures at the site are re-confirmed after clarifications
have been obtained. The finally understanding is
documented and provided to all members of the team.
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4.5 Comparison of Bid and Contract
After having understood the scope of work the team starts
comparison of the Bid and Final Contract documents. In
some case the client may have included some provisions in
the final contract that are different from the basis used for
preparation of the bid. At this stage a list of items should be
drawn which could be cost adder and must be under close
vigilance by all concerned or there may be some items to
earn more revenue.
4.6 Determine impact on costs
At times some last minute discounts may have been made
for which the financial implications have not been fully
analyzed and incorporated. The objective of this review is to
understand all these differences and determine how they
are to be tackled.
Once the differences in the Final Contract and the Bid have
been identified some members of the team with a financial
background are assigned the task of evaluating their impact
on costs. The impact on the budget and cash flow of the
project is studied and analyzed. In case the impact is
significant then the original correspondence is reviewed to
see if there was some exception claimed while submitting
the proposal on account of which the client can be asked to
revise the terms of the contract.
4.7 Revisit Execution Strategy
Members of the core team review the execution philosophy
to see how costs can be reduced. The following are some of
the items reviewed.
• Procurement of Descon supplied material from more
economic sources
• Sub contracting work packages
• Execution methodology keeping in view the efficient
deployment of E&P.
• Adoption of mechanization where it can reduce costs
• Hiring or purchasing of equipment and plant
• Mechanism of setting up the site camping facility and the
Temporary site facilities Enquires are floated to get more
realistic price estimates for the procurement of material and
its delivery at the site. Similarly quotations are obtained
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from other possible vendors for equipment required at the
site. Methodology of performing major jobs is reviewed to
see how costs can be reduced. Efforts are made to more
extensively utilize Descon owned equipment that may now
be available in time for the project needs. E&P department is
contacted to confirm availability of Descon owned resources
planned to be utilized at the project and to see if additional
Descon owned equipment could now be used in place of
hired equipment. Alternate options are considered and
evaluated for subcontracting out additional portions of the
work. The following advantages can be expected from sub
contracting
• Lower direct and indirect costs
• Improvements in project schedule
• Sparing company’s resources for other more productive
utilization
Avenues for obtaining manpower at cheaper rates than
considered in the proposal are explored. After having
analyzed the contract the individual members then come up
with their recommendations on how the project execution
strategy should be changed so that costs can be optimized.
Once all the proposals have been reviewed, the team leader
draws up the overall execution strategy for the project.
4.8 Review and revision of WBS and OBS
Keeping in view the formulated execution strategy members
of the core team review the original WBS and OBS. Some
changes shall be necessary for revisions that may have been
made in the subcontracting strategy. It is also likely that
some changes shall be required keeping in view the
capability of the individuals available for deployment to the
project.
4.9 Revise budget and cash flow forecasts
The financial impact of any changes in the execution
strategy such as revision in the subcontracting criteria is
combined with any differences found in comparing the final
contract and the bid. The overall impact of these changes is
then used by the Planning and FEDC Manager to prepare
Rev 1 of the budget. The cash flow forecast is also revised
accordingly. These are then reviewed by the Site Manager
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and sent to the BA head for approval.
4.10 Revision of Level 3 Plan
Keeping in view the additional information now available the
level 3 plan is reviewed in detail to see if any changes are
required. It is possible that some adjustments have to be
made to allow for some delayed deliveries. Once these
changes have been incorporated a revised level 3 plan is
prepared. In case the changes are likely to have a cost
impact or in the worst case an impact on the overall project
schedule these are discussed with the Head of the BA. Some
clients require that all revisions on the level 3 plan are
communicated to them.
Their approval of plan revisions is obtained if required.
4.11 Revise Manpower Histograms
Some revisions in the execution strategy and the Level 3
plan might have an effect on the manpower histograms.
These are re evaluated and new histograms printed to
correctly assess the overall and craft-wise manpower
requirements.
4.12 Prepare 3-month look ahead
In order to carry out more detailed planning the procedure
adopted is to take the first three months of the project and
review the requirements of materials equipment and
manpower for the activities planned in it. This 3-month look
ahead plan is prepared on Primavera by the Planning
Engineer and is reviewed by the Planning and FEDC Manager
and the Financial Controller. It is then jointly reviewed with
the Discipline In-charges, Construction Managers and Site
Manager and finalized. Preparation of this look ahead plan
enables accurate estimation of resource requirements
during this period and allows ample time for their
arrangement.
4.13 Mobilization Plan
At this stage detailed plans are made for the mobilization
activities that shall be carried out at the site. This plan is to
have the time schedule for building up of the site facilities,
arrangement of manpower and equipment. Although the
Mobilization plan shall vary from project to project the timing
and duration of the following salient activities is addressed
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in most of them.
• Kick of meeting, both internal and with client
• Mobilization of key personnel
• Procedure for visa and security passes
• Deployment of indirect staff
• Deployment of direct staff
• Hiring of technicians
• Preparation of documentation for WPS/PQR and WQT
• Welder qualification testing
• Preparation of subcontracting packages and floating of
enquires
• HSE manual submission and approval
• Project Quality Plan submission and approval
• Tools and tackle procurement and certification
• Equipment and plant deployment
• Possession of camp
• Setting up of camp facilities
• Provision of utilities at camp
• Possession of site
• Survey and trial excavation
• Fencing of site and grading of area
• Setting up of offices
• Setting up of workshops
• Setting up of lay-down area
• Setting up of Client Material Store and Descon Warehouse
• Provision of utilities, toilets, sewerage system, power
generation and distribution
4.14 Appoint Mobilization Incharge
One of the members of the core team is now appointed as
the mobilization
incharge. This function is covered under the title of Incharge
Site set up in the job descriptions. He will normally be the
first individual who will move to the project site.
4.15 Configure Project Management Systems
As most of the members of the site team are now available
in the remobilization office the Project Management System
is now set up there and configured to give the individuals
hands on experience of using the system. The Business Area
arranges hardware required for this purpose. Data available
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for the project is populated into the system. Data from the P
3 plans is imported into the DPMS module of PCS. Similarly
the GDMS and GDES systems are also loaded. SMART and
ACCPAC are also configured by the respective users. The
Planning and FEDC Engineers try out the DSTS and DCS
modules while the I/C QC tries out the ITS module. The I/C
stores check out the MMS module and ACCPAC Icon while
the Financial Controller checks out the other ACCPAC
modules. I/C P & A & I/C E&P check put the GDMS and GDES
systems.
This exercise has many benefits.
• Gives the individuals confidence in the capabilities of the
hardware and the systems selected
• In case there are some bugs in the system they can be
identified and rectified
• Makes all the members familiar with the work of this
project
• Allow the team members to interact and develop as a
team
• Saves time in setting up the system after it is located to
site.
4.16 Prepare MRP
The Planning engineer and the FEDC engineer now look at
the scope of work and prepare the outlines of the overall
material requirements. The schedule for the delivery of the
items identified is worked out keeping in view the
customer’s approval time. It should also be kept in mind that
un necessary funds should not be blocked in inventory while
at the same time ensuring that material shall be ailable
when it is required. The Planning & FEDC Manager makes
the material requirement plan with assistance of Planning
Engineer and FEDC department using SMART.
4.17 Prepare HSE Plan
The HSE plan is prepared by blending the companies
standard practices with the site related conditions and client
requirements. The table of contents of a typical HSE plan is
available at Attachment 4.6. During the pre-mobilization
phase resource requirements are identified, arrangements
made for their timely delivery, and Risk Assessment studies
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that are required for the project are carried out. For further
details on the preparation of the HSE plan please refer
Chapter 11 Article 4.4
4.18 Prepare Project Specific Method Statements
Generic method statements can cover most of the activities
of a project.
However there are some activities that require specific
method statements to be prepared. It is desirable to have
the relevant Discipline In-charges review these activities in
detail and draw up method statements for them. In case the
Discipline Incharge for that activity is not available at this
stage then the
FEDC engineer shall be responsible to prepare the method
statement. These can be drawn up in consultation with
relevant discipline experts. Most of the heavy lifts and
complex activities shall be covered under Specific Method
Statements. It is customary for some clients to ask for the
method statements submitted in advance of the work.
4.19 Prepare Rigging Studies
Some Rigging Studies would have been prepared during
proposal stage for heavy lifts. These are reviewed keeping in
view all additional information that may have become
available. It is possible that the equipment stipulated earlier
may not be available or the expected conditions at the site
may have been found to be different. All of these are
considered by the E&P incharge and revised studies are
prepared. Studies are also prepared for the smaller lifts.
4.20 Prepare WPS and Quality Plan
After having studied the work scope and the customers
requirements I/C QC prepares the Project Quality Plan for the
project. The Welding Procedure
Specifications and Procedure Qualification Records are also
prepared. For details please refer to Chapter 11 articles
11.4.3, 11.4.5 and 11.4.8
4.21 Schedules for Client Deliverables
With projects of this nature it is usual for the engineering
work to be continuing well into the period when construction
activity will have started.
The time schedule of construction activity is entirely
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dependent on the in time delivery of drawings, specifications
and client supplied materials. For this reasons it is essential
to discuss the schedule for the receipt of all client supplied
material and drawings and then come to a written
understanding on this. This can then be referred to and
followed up. In case drawings delivery is delayed the client
can be asked for suitable compensation or relaxations.
4.22 Summary
The total inputs required for proper pre-mobilization
planning from Proposal and Business Area have been
tabulated overleaf. The actions taken in this phase and the
responsibly for carrying them out are summarized in the
central box The outputs for use of the Site Management are
listed in the box on the right.
Pre Mobilization Planning
Input form Process Responsibility. Output form
Proposal/Business Area Project Team to Site Manager
As submitted bid. Tech & Commercial doc Understand scope
of work, PLFEM Evaluation of proposal working report
ITB Complete doc Understand Descon and client
responsibility PLFEM Revised level 3 plan P3 Level 3 plan,
with Manpower loaded P3 Analyze proposal working PLFEM
Mobilization plan P3
Mapping of BOQ and CCTRs. excel Compare final contract
document with Proposal PLFEM MRP for material and
consumables SMART
CCTR wise Manhours and Quantities, excel Determine
impact of any changes in the above on the project, PLFEM
Configured Project Monitoring Systems PCS WBS, excel
Resource loading on level 3 plan, Material & Consumables
Plng. Proposal for budget Rev 1 excel Organization chart
excel Revise level 3 plan if required Plng. Organization chart
excel Mobilization Plan. P3 Prepare MP histograms at
Supervisor level Plng. Project specific documents doc
Deployment Plan Direct MP doc. Revise WBS and OBS if
required Plng. Method Statements doc Deployment Plan
Indirect MP doc. Review of budget R 0 PLFEM Schedule of
Client deliverables excel Deployment Plan Equipment &
Plant doc. Prepare MRP for material and consumables Fedc
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Direct Materials and Consumables doc. Prepare detailed
mobilization plan PLFEM TSF details doc. Appoint
mobilization incharge SM Budget Rev 0, excel Prepare
project specific.
CHAPTER-05
Mobilization
A lot of resources and efforts are required to start a new
project in a timely and cost effective manner. ‘Mobilization’
means, to move and muster all the resources required for
the project and gear up for performing the job. The period
between award of the project and its starting date, as given
in contract, is called the ‘Mobilization Period’. It varies from
project to project depending upon the size of project, the
contract conditions and total duration of the project.
5.1 Site clearance
The first activity to start at the site after taking it over is to
clear it up for eventual setting up of the project and the
temporary site facilities. It is planned in advance, as all other
activities at the site are dependent on it. Owing to the large
areas of most sites the clearance is arranged in a sequential
manner so that the area where the temporary site facilities
are to be set up becomes available while work on the other
areas continues.
5.2 Arrangement of site facilities
Once the site clearance has progressed satisfactorily, work
of setting up the Site Facilities is started. This includes the
following:
• Residential Facilities
• Project Site Facilities
• Workshops and Yards
• Stores / Warehouses
• Lay down / Storage Area
• LAN Architecture and Communication Infrastructure
• QC Laboratory
• E&P Workshop and Generator Rooms
• Concrete Production and Testing Facilities
• Establishment of Communication Mode
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Generally site facilities are constructed through local sub-
contractors. Standard drawings and specifications are
available that can be modified as per requirement. Standard
sub-contracting procedure (as described in detail in the
Contracting Manual) is adopted for pre-qualification of sub-
contractors and job is awarded after inviting and receiving
an appropriate number of quotations and reviewing them.
I/C Site Set up is responsible for looking after all activities
related to establishment of site facilities. Incharge Site Set
up carries out final inspection of the facilities before these
are handed over to the site.
5.2.1 Residential Facilities
Residential facilities comprise Dormitories, Barracks, Mess,
and Kitchen for Direct and Indirect staff at the project. These
are built on the land arranged for the purpose. For design
and typical BOQ detail for residential facilities please refer to
the Project Site Facilities Manual and PP&A/SOP/02 Section
5.2.2 Project Site Office
Project Site Offices are the main offices where the Site
Manager and other key persons are placed. These can be
located together or at respective work locations / site. For
typical design and related information please refer to the
Project Site Facilities Manual.
5.2.3 Workshops and Yards
Workshops and yards are established depending upon the
scope of work at the project. For typical design and related
information please refer to the Project Site Facilities Manual.
5.2.4 Stores / Warehouses
Stores and Warehouses may be built in temporary structures
or by using porta cabins. This shall depend upon nature of
project and the quantity of material to be stored. For typical
design and relevant information please refer to the Project
Site Facilities Manual.
5.2.5 Laydown / Storage Area
Requirement of Laydown/Storage Area depends on the
quantity of material to be handled. The area is generally
selected close to the Store / Warehouse / or Fabrication shop
so that there is minimum handling of material. For typical
design and other relevant information please refer to the
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Project Site Facilities Manual.
5.2.6 LAN Architecture and Communication
Infrastructure
PP&A at site establishes communication infrastructure by
providing telephone, fax and e-mail facilities for fast
communication.
Local Area Network (LAN) is required to share data amongst
various project management systems in order to avoid
duplication of data entry and to make systems operate
efficiently and intelligently. In order to establish LAN facility
at project site, System Administrator studies various
networking options for example peer-to-peer, server based
etc. depending upon extent of network required, total
number of computers to be connected, site layout, budget
provision etc. System Administrator prepares cost estimates
for different options and seeks approval from the Planning
and FEDC Manager & Site Manager. Upon approval System
Administrator department establishes LAN.
5.2.7 QC Laboratory
A Quality Control laboratory is established at site to facilitate
Quality Control inspections and tests. QC laboratory is
equipped with all required equipments and apparatus. The
layout of QC lab depends upon the nature of tests to be
performed. I/C PSF is responsible for establishment of QC lab
in accordance with the approved design and specifications.
5.2.8 E&P Workshop and Generator Rooms
Layout of E&P Workshop and Generator Rooms depends
upon number of equipment to be deployed at site. Details of
these are available in the proposal working. I/C PSF is
responsible for construction of these facilities at site as per
approved design.
5.2.9 Concrete Production Unit
For civil projects concrete production unit or Batching Plant
is required for preparation of bulk concrete. Drawings for
foundation and other facilities related to Batching Plant are
available with E&P department. These facilities are
developed at beginning of the mobilization phase so that
Batching plant is commissioned before start of concrete
works. Alternatively if an alternate source is available for
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supply of premixed concrete then it may be utilized if an
overall saving can be achieved.
5.2.10 Security Arrangement
Property and Personal Security is ensured by installing
security gates, fences, security posts, lighting arrangement
etc. Contacts with local law enforcing agencies are
maintained to avoid security risks. For further details please
refer to PPA/SOP-02 Section B.
5.2.11 Utilities
Electrical network, Water and sanitation arrangements,
Camp market,
Recreation halls, Indoor and outdoor Sports facilities are
provided to maintain healthy and comfortable living for the
direct and indirect staff to be stationed at the site. In some
contracts the Client also desires to have the contractor set
up facilities for their use at the site. Details of the facilities
required are available in the proposal working.
5.3 Commission Security arrangements
Incharge Personnel and Administration is responsible to
provide foolproof security to the company employees and
property at the project site. The following steps are taken in
this regard:
1. Security personnel are deployed at the gates of the camp
and at other sensitive areas. The security staff at project
sites consists of:
• Security Supervisor 01
• Head Guard (Shift Incharge) 02 (Day / Night)
• Security Gate Clerk 02 (Day / Night)
• Security Guard As per requirement.
2. Access to the project site is allowed only through the main
gate. Only the persons who display the Company Identity
Card, Visitor Entry Card or show the Temporary Security
Card will be allowed to access the project area.
In addition to the above security measures ‘Gate Passes’ will
be issued to control the incoming and outgoing machinery,
tools, plants, equipment and material. For further details
please refer to PPA/SOP-02 Section B.

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5.4 Set up Stores for Descon material and Client
Material
Warehouse
Once the basic physical facilities have been built the Client
Material Store and
Descon Warehouse are prepared for operation and receipt of
material. Some of the Staff for these functions is also
mobilized early so that they are ready to take material and
issue them as required. It is desirable to have the project
monitoring systems operative as early as possible for the
entry of the Bill of
Material into the MMS module and the preparation of the
MRP for the project. Similarly the ICON module of ACCPAC
shall be used for the Descon Store and it should also be set
up. In case there is some delay in commissioning of these
systems then alternate manual records have to be
maintained for the interim period but these must
subsequently be entered into the systems as soon as they
become available.
5.5 Arrange indirect manpower deployment
The estimation of indirect manpower is based on the direct
manpower requirement. This estimation is also done during
the bidding stage and is accordingly included in the budget
of the project. Sourcing of manpower is also considered
while preparing the bid keeping local conditions and
availability in view. These assumptions are rechecked in the
pre-mobilization stage considering latest information and
revised if deemed appropriate. As soon as the project is
awarded, a mobilization schedule is prepared for the indirect
staff and the personnel are mobilized as per the schedule.
The Site Manager works with the Business Area Head or
through his designated representative, to ensure timely
allocation of human resources. The requirement is conveyed
to HRD through form HRD/FRM-03 the requirement of the
indirect manpower is arranged by any or combination of the
following means.
1. Transfer of manpower from the DESCON Head Office or an
oversea BA to the project site.
2. Transfer of manpower from other project sites where the
Page 54
requirement of personnel has decreased
3. If the required manpower is not available from the above
two sources, the same may be met through fresh
recruitment. HRD advertises the job vacancy in newspapers.
A selected panel, appointed by the Site Manager, interviews
the candidates and suitable persons are selected.
5.6 Arrange direct manpower deployment
Direct Manpower is estimated at the bidding stage. This
estimate is based on the scope of work and the effort
required to perform that job and is in the form of month-wise
manpower histogram for each craft. Like indirect manpower
the sourcing of direct manpower is also considered at the
bidding stage and certain assumptions are made to optimize
costs. These are re-evaluated and revised if some new
factors have come up.
Direct manpower is hired by PP&A Department both at Head
Office and at job site. But in case, sufficient craftsmen are
not available from local area, some craftsmen are hired from
other areas or hired and transferred from the head office.
5.7 Recruitment
Four different types of recruitment is done in the company
• Permanent Management Cadre
• Contract Management Cadre
• Permanent Non-management Cadre
• Temporary Non-management Cadre
The permanent and contract employees are employed
through HRD at Head Office. Hiring of Management Cadre
employees is done as defined in the Hiring Policy of the
Company HRD Policy- 02.
Temporary employment is done at the project site by the
respective Incharge
Personnel and Administration (I/C P&A), and is authorized by
the Site Manager. In case manpower is required in the
Management Cadre, the concerned person initiates the
“Manpower Request Form” HRD/FRM-03 and gets it
approved from Site Manager. This is then sent to HRD
through Head BA.In case of requirement of non management
temporary staff PP&A FRM 17 is filled out and given to I/C
PP&A.
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I/C P&A Site ensures that temporary employment is done
according to the provisions in the approved budget. The
selection can be from any of the following
• Manpower Data Bank
• Staff available from other Project sites
• Applications against advertisement
Selection is based on past experience and performance
while fresh candidates are interviewed either at the site or in
the head office.
Appointment letters are issued to the newly inducted
temporary employees, by I/C Site P&A. Personal files for all
temporary employees are maintained by the Incharge Site
Personnel & Administration.
Appointment Letters are not required for workers employed
on day-to-day basis. Payment to such workers is made on
the basis of their time sheets payroll etc. as the case may
be. Every temporary employee is entered in
GDMS / Establishment Register and Employee Number is
issued accordingly.
If the services of temporary employees are required beyond
the period as mentioned in his temporary employment
letter, an extension letter is issued by Incharge Site
Personnel & Administration as per requirement of project.
For detailed procedure of temporary appointment, refer to
Hiring Policy
(Temporary) PP&A/SOP-07
5.8 Manpower Induction. Orientation
Manpower reporting at site is briefed about the company’s
procedures and any site specific policies. They are given
detailed instructions about the safety requirements for
working at the site and the rules to be followed in the using
the camp and other facilities.
5.9 Set up staff attendance control facilities
All employees at project sites, punch their cards through
Time Recorder / bar
Coding Machine or mark their arrival and departure time in
the attendance register, as the case may be.
Up-to-date record of attendance is maintained at every
project site for all the employees, in order to ensure that all
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employees remain punctual and regular.
Besides the deduction of salary / wages of unauthorized long
absentees / latecomers, disciplinary action may also be
taken as per rules. The Incharge Personnel and
Administration forwards the attendance reports for all
permanent and contract employees to the Incharge
Administration at the Head Office by 22nd day of each
month. For further detail please refer to
PP&A/SOP-05
Leave record for all permanent employees is to be
maintained by Incharge
Administration at the Head Office and that of all contract
and temporary staff by Incharge Site Personnel &
Administration. For further detail please
HRD/Policy-09
GDMS
GDMS (Gainful Deployment of Manpower System) shall be
set up at Project Sites to monitor cost center wise actual
man-hours consumed. It shall also be used to record
employee attendance and generate the payroll.
The Incharge Personnel and Administration Site prepare
GDMS reports and the daily input of actual man-hours is sent
to Planning & FEDC manager to calculate efficiency. Also,
monthly GDMS reports are generated at site and forwarded
to the Project Manager and I/C PP&A Head Office.
Daily Attendance
The daily working hours of all direct employees are entered
into the DSTS sheets by the supervisors to keep record of
the working hours and book costs in respective cost centers.
DSTS is filled by Supervisor of the discipline and is approved
by Discipline Engineers. In case of Special Overtime, the
DSTS is also approved by the Discipline
Incharge/Construction Manager. Time office keeps the
relevant record after entering it into GDMS. For details on
DSTS
5.10 Arrange Equipment and Plant Deployment
The deployment of equipment and plant is arranged as
planned in the Equipment and Plant Deployment Schedule.
The equipment is arranged by following means:
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a) Equipment available within the company is transferred to
the new job site after proper maintenance. Incharge E&P at
site is responsible to coordinate with BA to arrange the
required equipment as per schedule.
b) If the equipment required for the site is not available
within the Company, the BA initiates CIR procedure to
purchase fresh equipment. A buy vs. rent evaluation is
carried out and presented to the senior management for
approval in accordance with the limits of authority.
c) In case equipment required cannot be released from other
sites, or is not available within the Company, it is hired from
any suitable supplier by the
BA and mobilized at site.
MD grants the approval for fresh purchase. A capital
investment request is raised, which is approved by the
Executive Committee. The required equipment is then
arranged by Head E&P and dispatched to site.
Please refer to Attachment 4.4 Equipment Mobilization
Plan. Also Read for further details: Equipment Planning
E&P SOP-02, Fresh Purchase of
Equipment and Plant E&P SOP 03, Hiring of Rental
Equipment and
Transport E&P-MS-01.
5.11 Procurement of First Lot of direct Materials
Information furnished from Bid documents on Direct
Materials is utilized for procurement at Mobilization stage of
the project. Additional detailed information that is now
available on material requirement is used for drawing up the
Material Requirement Plan. This is then used for deciding the
delivery schedules. I/C Warehouse arranges to raise indents
and Site Manager communicates material requirement to
Head BA to procure and supply first lot of materials to Site.
In case the procurement function has been set up at the site
then site shall arrange procurement directly.

5.12 Negotiate and award Sub Contracts

Quotations received for work to be subcontracted are

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evaluated. Fresh quotations are invited if felt necessary. The
prices and terms are negotiated and the jobs are
subcontracted. For details of procedures to be followed
please refer to Contracts manual.
5.13 Set up project monitoring systems
The hardware for project monitoring system is set up at the
site. Preloaded and configured IT software are received from
the pre-mobilization team.
Networking is hooked up and the system is commissioned.
Data and documents that are received from the customer
are fed into the relevant software modules. Data on
expected dates of client-supplied materials is also in field
5.14 Determine resource availability
Now that the data on material availability has been fed into
the system it is compared against requirement for the first 3
months. This requirement and availability comparison
enables the Planning Engineers to recheck the activities that
can be carried out during these periods. They can now draw
up the detailed plans and define the targets to be achieved.
5.15 Prepare 4 week look ahead
The Planning Engineers then make more detailed plans for
the first 4 weeks out of the 3-month look ahead plan. In this
the overall work front availability is checked in terms of
availability of the following
Work execution resources
1. Manpower (GDMS)
2. E&P (FAMS)
3. Materials (MMS)
4. Consumable (Icon)
Work support
1. Method Statement
2. QA/QC Documents
3. HSE/LP Gear
4. Work permit
5. Access, scaffolding, excavation, entry etc.
Keeping the availability of these resources activities are
planned over this period and the 4 week look ahead
prepared for the first 4 weeks of the project. This schedule is
then provided to the Planning and FEDC manager for review
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and finalization with the Site Manager and the Discipline
Incharges.

CHAPTER- 06
Organization
6.1 Typical Site Organization
It is quite likely that all of the personnel assigned to a new
project site would not have worked together on some earlier
project and it will take them some time to get used to the
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working conditions at this site. In order to make the
transition smooth and effortless it is desirable to have very
similar organizational set-ups on all of Descon projects. A
typical site organization chart was finalized after discussion
in the Strategic Planning Meeting in
March 2004. This is included as Attachment 6.1
This typical chart is to be used as a template for drawing up
site organizations for individual projects. It is possible that
for some of the relatively smaller projects some of the
functions may be merged and assigned to the same
individual but the basic concept is to be followed throughout
the company.
The Site Organization is based on the philosophy of having
central planning concentrate on long term planning. This
shall cover the level 3 plan, 3 month look ahead and 4 week
look ahead plans and their updation. The breaking down of
the 4 week look ahead into weekly plans and daily targets
shall be handled by the Area Schedulers under the
supervision of the Discipline Engineers and Discipline in-
charges. It has been agreed that this system will enable
closer interaction between the Area Schedulers and the
Discipline
Supervisors directly responsible for work execution
6.2 Responsibility Matrix
The responsibilities of the different site functionaries in
performing various planning monitoring and controlling
functions at the site have been plotted on a common matrix.
This is included as Attachment 6.2
6.3 Job Descriptions
Keeping the typical site organization in view typical Site Job
Descriptions have also been drawn up. In these the concept
of responsibilities part has been written in such a way that it
will give an overview of the responsibility of the individual
assigned to this position. Charts have been included in the
JDs of the key positions defining the key inputs this
individual will receive from others, the feedback that he has
to provide and the outputs he has to produce. The typical
Site JDs are included as Attachments with this chapter.
Listing of the Job Descriptions is provided on the following
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page. They are arranged in groups according to the type of
function performed. For a quick reference the Concept of
Responsibilities for the functions are summarized
1) Typical Site Organization Attachment 6.1
2) Responsibility Matrix Attachment 6.2
3) Listing of CORs of all site JDs Attachment 6.3
4) Site Manager Attachment 6.4
5) Planning and FEDC Manager Attachment 6.5
6) FEDC Engineer Attachment 6.6
7) Planning Engineer Attachment 6.7
8) System Administrator Attachment 6.8
9) Quantity Surveyor Attachment 6.9
10) Document Controller Attachment 6.10
11) Planner, Discipline Attachment 6.11
12) Central Material Controller Attachment 6.12
13) Construction Manager Attachment 6.13
14) Discipline Incharge Attachment 6.14
15) Discipline Engineer Attachment 6.15
16) Scheduler Attachment 6.16
17) Discipline Supervisor Attachment 6.17
18) Area Material Coordinator Attachment 6.18
19) Financial Controller Attachment 6.19
20) Incharge Contracts Attachment 6.20
21) Cost Controller Attachment 6.21
22) I/C QA QC Attachment 6.22
23) I/C HSE Attachment 6.23
24) I/C Descon Material Store Attachment 6.24
25) I/C Site Procurement Attachment 6.25
26) I/C Client Material Warehouse Attachment 6.26
27) I/C PP&A Attachment 6.27
28) I/C E&P Attachment 6.28
29) I/C Site Setup Attachment 6.29

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 CHAPTER- 07
Planning & Scheduling
7.1 Introduction
The purpose of Planning and Scheduling is to achieve project
goals and objectives through the planned application of
resources to meet the project’s quality, cost and revenue
objectives.Following benefits are outcome of good planning
and scheduling:
• Gainful deployment of resources.
• Eliminating surprises.
• Earning good reputation in the business.
• Better utilization of time.
• Achievement of high cost efficiency.
At proposal stage, a fit for the purpose Level 03 Plan is
prepared based on the data available in the bidding
documents using Primavera Project Planner.
Once the project is awarded the same plan is revisited or
revised keeping in view latest available information. This
plan is prepared before mobilization to project site. It covers
all activities (also called Cost Center) in each area and is
resource loaded in terms of manpower. After approval this
plan is frozen as a baseline plan called the original plan and
is used as a reference to compare actual progress with
original planned progress.
This original Plan is imported into the DPMS module of PCS.
This information available in PCS is used for carrying out
detailed Level 04 planning and scheduling through DSTS.
Actual achieved progress is entered into DPMS daily through
DSTS which allows comparison of daily planned targets to
actual achieved progress. Supervisor wise daily efficiency is
generated through the DPMS module and is made available
to the Discipline Engineer and Incharges for their review. In
the last week of every month the Level 03 Plan is updated
by incorporating actual progress and re-scheduling certain
activities as per latest information available. This new plan,
called Latest Forecast Plan, depicts actual picture of the
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project with a forecast of how things will be carried out in
the future. Planning
7.2.1 Development of Three Month look ahead Plans
Succeeding three-month’s activities and targets are
extracted from the Level-
03 plan to form a Three Month look ahead plan. This plan is
prepared at least one week before the start of the
succeeding month. It starts at a point where conditions are
known and work can be planned in detail accurately for first
month of the period, with work for second and third months
being dependent on progress in the first and second months.
The Three Months look ahead plan explains in significantly
more detail how to achieve the desired amount of progress
during this work period. It provides guidance on how to
organize the resources but their mobilization shall be made
with further confirmation of the work fronts through four
weeks lookahead schedule. The Three Months look ahead
plan is updated by the end of every month by incorporating
progress achieved during this month. A sample Three Month
Look ahead is enclosed as Attachment 7.1 while the flow
chart for preparation of the three month plan is at
Attachment
7.2.2 Development of Four Week Look ahead Plan
Just as the Three Month plan was drawn from the level 3
Plan, a Four Week look ahead plan is derived from the Three
Months look ahead plan. This Four week plan is developed
by incorporating additional inputs from Client regarding
material and equipment availability and progress in
associated areas. This Four Week look ahead Plan includes
detailed targets of progress to be achieved in each discipline
and becomes the basis of doing supervisor level planning.
Like the three month plan the Four Week Look ahead plan is
also rolled at the end of every week keeping in view
progress during the week completed.
For an example of a Four-week Look ahead plan please see
Attachment 7.3 while the flow chart for preparation of the
three month plan is at Attachment
7.2.3 Level 4 Planning
The Four Week Look ahead plan prepared by Planning and
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FEDC is reviewed by the Discipline In charge and the
Discipline Engineers. They decide the weekly targets for the
individual supervisors in the group to meet plan goals. These
are then passed on to the Area Scheduler and Discipline
Supervisors. The Area Schedulers carry out daily scheduling
at drawing level for each supervisor. This day to day level 4
planning is done in the DPMS module of PCS.
2.4 Daily Schedule & Time Sheet (DSTS)
Daily schedule and Time Sheet (DSTS) is a very important
document generated from DPMS every day. Purpose of this
document is following:
• To convey to each supervisor drawing wise plan for the
day as the complete activity may take several days.
• To report back progress and efficiency with which the
targets for the day were achieved.
• To enable recording of direct man-hours on cost centers.
• To facilitate comparison of gate attendance recorded
through time cards with the hours recorded by the
supervisors ensuring that manpower is only paid for the time
they were available.
It is the responsibility of the Area Scheduler to prepare it and
to ensure that the DSTS is available to the supervisors first
thing in the morning. He ensures that only those items are
included in the schedule for which all elements of work front
are available.
To be able to produce realistic and useful daily schedules
the Area Scheduler stays in touch with progress in the field
and discusses it with the Discipline Supervisors.
The supervisor performs the jobs as planned in DSTS and at
the end of the day fills in DSTS for progress and actual man-
hours consumed.
The DSTS is filled in by the supervisors before the close of
the day and is handed over to the concerned Scheduler.
The Scheduler picks off progress from the filled out DSTS
and feeds it into DPMS. He sends the DSTS to the time office
for entry of cost center wise actual man-hours into GDMS by
the timekeeper.
1) 3-Month Look Ahead Flow Chart Attachment 7.1
2) 3-Month Look Ahead Schedule Attachment 7.2
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3) 4-Week Look Ahead Flow Chart Attachment 7.3
4) 4-Week Look Ahead Schedule Attachment 7.4
5) DSTS Flow Chart Attachment 7.5
6) Daily Schedule Time Sheet (DSTS) Attachment 7.6

CHAPTER- 08
Field Engineering & Document Control
(FEDC)
8.1 Introduction:
Field Engineering and Document Control is a very important
function in project execution as it acts as a repository of
project specifications, drawings and field engineering related
information and documents at the site. The function also
ensures correct estimation of BOQ and BOM from drawings
their distribution to CCTRS and breakdown into workable
package as per WBS & OBS. It also provides field
sketches/guidance to execution staff when required, and
arranges clarification of technical queries from the customer.
The overall flow of information through FEDC is described in
tabular form in
8.2 Document Control:
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8.2.1 Receiving
The Document Controller receives all documents / drawings
from the Client/Consultant on behalf of the FEDC Engineer.
The received documents are checked for conformity
according to the transmittal and in case any discrepancy is
observed with the transmittal the same is clarified with the
issuing office. Document Controller then enters all records
regarding receipt of drawings into DCS module of PCS.
The drawings are then estimated as described in 8.3.1 and
marked up as described in 8.3.2
8.2.2 Issuance
The marked up drawings are then dispatched to the relevant
Discipline
In charges through transmittals for planning their
construction activities.
8.2.3 Revision control
At the time of entry of receipt of a drawing or document into
DCS in case an earlier version of the drawing had been
received the system points it out. All the persons who had
been issued the earlier version are informed that the
drawing or document with them has been superseded and
the new one is on the way. This enables costly rework to be
avoided. The new drawing is then issued through a
transmittal while the old version is withdrawn from site,
marked as “SUPERSEDED” and filed separately.
8.3 Field Engineering
8.3.1 Estimation
Keeping in view the workload with the Quantity Surveyors
and the priority of the drawing the FEDC Engineer assigns
the drawing to a Quantity Surveyor for estimation of its BOM
and BOQ and Total Man-hours based on its BOQ using the
norms for this type of work. These are the same norms that
were used in the bid preparation. After the estimation the
drawings are also stamped with the following information:
a. Cost Center-wise B.O.Q
b. Total Man-hours
c. Direct materials
d. Direct consumable
e. Whether the job is a B.O.Q item or Extra Work
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Quantity Surveyor then enter B.O.Q of the drawings into
DPMS and the B.O.M into MMS.
8.3.2 Field marking of drawings
To facilitate shop fabrication and later field installation of
piping, FEDC
Engineer reviews the drawings and prepares spool break
down by marking the field and shop joints. For electrical
drawings cable cutting plans are prepared.
In case the client is providing drawings in electronic format
the procedure adopted is described in Attachment 8.2
8.3.3 Preparation of Field drawings and Test Packs.
FEDC Engineer prepares field routing drawings / sketches for
small bore piping. Field Engineer prepares For E&I discipline
Field Engineer prepares field routing drawings / sketches for
cable trays and conduits etc. where ever applicable. Test
Packs of piping and loops are also prepared as per
requirement of P&IDs and piping lay out plans.
8.3.4 Method Statements Preparation and Submission
The FEDC Engineer coordinates the overall requirement of
method statements for the project. The requirement of
method statements is communicated to the relevant
Discipline Incharges for preparing them. The prepared
method statements are then brought in line with project
specific requirements and submitted to the client with Site
Managers approval. After clients confirmation they are
distributed under document control.
8.3.5 Material Submissions for approval.
The FEDC Engineer coordinates the submission of all
material samples to the client for approval.
8.3.6 Technical Clarifications
During course of execution of the project it is sometimes
required to obtain written clarifications from the client. This
could be necessitated by any of the following reasons.
• Error or omission in defining the scope of a deliverable
• Error or omission in defining the scope of the project
• Implementing a work around plan to overcome a difficulty
encountered during execution
When staff carrying out detailed planning or having the work
executed feel that written clarification from the client is
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required they will raise a QUERY SHEET. See Attachment
8.3 (Form No. PMS/FRM-28)
The Query sheet would be forwarded to Planning & FEDC
Managers describing the problem. Planning & FEDC Manager
shall log the QUERY
SHEET in his register and review the necessity of getting the
clarification. If the cause is found to be justified the QUERY
SHEET shall be sent to the client through the Site Manager.
A reference number shall be maintained of all QUERY
SHEETS sent out. See Attachment 8.4 (PMS/FRM-29)
Planning & FEDC Manager shall follow up the client to get
response to the queries sent. He shall intimate the FEDC
Engineer and / or Discipline
Engineer about client's response to the QUERY SHEET after it
is logged in his register.
In case the clients response would result in an increase in
the scope of work this is handled as defined in the procedure
for extra work described in the
8.3.7 Preparation of As Built Drawings
The FEDC Engineer monitors and records all deviation from
drawings carried out in the field. Subsequently he ensures
preparation of “as built drawings” for completing the project
records and submission to the client
8.3.8 Tracking and Handing over of Documents
During the course of the project the FEDC engineer keeps
track of the movement of all documents. Salient amongst
these are Technical Queries,
Material Submissions, Quality Dossiers, Record of holds and
their release,
Record of equipment supplied and the clients acceptance
Certificates. He also consolidates all the documentation for
handing over to the client as per terms of the contract.

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 CHAPTER-09
Material Management
Material logistics and management are both very important
elements in the overall success of a construction project.
Even marginal delay in the availability of material can cause
upsets in the project schedule. This could require additional
expenditure to make up for the delays and in the worst case
could result in imposition of penalties. In a typical
construction project, material management system caters
for the procurement & inventory management for material
that is the contractor’s supply, as well as client supplied
materials. They are handled separately as costs are to be
accumulated for the first category while the client-supplied
materials are usually all free issue. Their storage is also in
separate independently staffed warehouses. The facility for
Client Material is called as Warehouse while the one for
Descon Material is termed as Store.
9.1 System for Descon Supplied Material
Material management function for Descon supplied material
is handled through the in house developed computerized
“System for Material
Acquisition, Retrieval & Transaction” – SMART
Following are the main functions of SMART.
• Item coding
• Material Requirement Planning – MRP System
• Material Procurement System
As complete details of all the material requirements are not
available in the early stages of the project, the periodic
requirement of all the main materials and consumables is
taken from the proposal documents. This is fed into the MRP
module for drawing up the MRP.
Details on the capabilities of this software are provided in
section 3.5
9.1.1 Sourcing
A comprehensive database of vendors / suppliers in Pakistan
and Overseas is maintained for sourcing purposes operating
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in the BA Office. Nature of materials to be handled is steel
plates & profiles, pipes & tubes, fittings, valves, pumps,
cathodic protection system, civil construction materials,
chemicals, process equipment, electrical & instrumentation
materials, cable trays, paints, oil & lubricants, etc.
9.1.2 Vendor Evaluation
All Vendors / suppliers are pre-qualified and approved by
Incharge
Procurement and Incharge Q.A. on the basis of their:
• Quality system Performance
• Capabilities to provide the required products / services
efficiently and within delivery schedule time frame
Pre-qualified vendors list is maintained and updated as and
when required but at least once in a year, by Incharge
Procurement. For detail on evaluation and pre-qualification
of vendors, please refer to Work instruction COMM-
PROCMS-
01 Sourcing and COMM-PROC-MS-02 Pre-qualification
of suppliers
9.1.3 Purchase Order (P.O.)
Inquiries regarding Material requirement with complete
technical specifications are floated to prospective vendors,
local/overseas as the case may be and comparative
statements are prepared for unit rates and other terms and
conditions for detailed analysis with regard to
technical/commercial aspects.
After approval of Comparative Statement, Purchase Order is
prepared according to the specification given in the indent in
favor of the selected supplier on specified format for
local/overseas procurement, and approved by the
competent authority.
For the repetition of a requirement, a Repeat Purchase Order
(RPO) can be issued to the same supplier for the same
item(s), on the basis of previous
Purchase Order, keeping in view the general market trend.
For bulk procurement of standard items and consolidated
project specific items, Rate Running Contracts can be
established. Purchase Order against
RRC is issued on the basis of indent after getting approval
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from the competent authority.
A Change Order is issued, whenever a variation occurs from
the original
Purchase Order e.g. cancellation of P.O., changing of
specification, quantities or price.
For further detail please refer to the following.
COMM-PROC-SOP-01 purchasing
COMM-PROC-SOP-02 Import of goods
COMM-PROC-SOP-03 Export of goods
COMM-PROC-MS-03 Purchasing
COMM-PROC-MS-04 Implementation of procurement through
SMART
9.1.4 Delivery Challan
After placement of Purchase order, materials are dispatched
to designated destination. Delivery Challan (D.C.) is
prepared and original copy along with the copy of Purchase
Order and Transit receipt, if required, is sent with the
material being dispatched.
Copy of the Delivery Challan will be acknowledged by the
respective Store as a token of receipt and is forwarded to
Finance Department along with accepted material report
AMR for release of payment to the vendor. In case of any
shortage or damage, Procurement department takes
necessary action for its replacement etc. with the supplier.
9.1.5 Material Loading, Receiving, Inspection,
Stacking, Issuance and Return
(AMR, SIR, MRN)
Rigging Study is carried out prior to loading and unloading of
items of equipment heavier than 10 tons in order to ensure
safe handling. Cranes and tools and tackles are inspected
before carrying out loading and unloading activities and Site
location, and landing area are properly cleared while loading
and unloading activities are undertaken. For heavy
equipment / material, arrangements of crane / rigging tools
are made with the help of E&P to ensure safe and proper
unloading. Receiving area is established at all site stores and
identified as per relevant color codes defined for project The
material will be received along with Purchase Order, Delivery
challan and (MTC). On receipt of the material at the main
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gate, I/C Security shall enter brief description of material in a
register maintained by him. At Project Site Inward Gate Pass
is prepared by the security staff. Store receives the material
on the basis of accompanying documents and arranges
unloading of the same in the receiving area. Daily material
receiving report is prepared by Store
All materials received are inspected by QC for every
consignment of transferred material, on the basis of
accompanying related documents.
Accepted Material Reports (AMR) or Fixed Asset Receiving
reports (FARR) are prepared for accepted material and
Stacking of material at appropriate place(s) in the store with
tags for identification. FARRs are processed in the
Fixed Assets Management System (FAMS)
Materials allocated to the project are divided into five broad
categories for ease of reference.
• Project Specific Items
• Standard Consumables and Loss Prevention
• Equipment and Plant Items
• Tools
• Fixed Assets
Computerized inventory records are updated at site to
facilitate hand on information for ready reference
Site issue requisition (SIR) are prepared by concerned Area
Material
Coordinators and authorized by the Central Material
Controller. Material is issued against approved SIR. This
document has the following Information
• Complete description of material and consumables.
• Quantity required (in figures / words).
• Project No. / Job No.
• Drawing Number
• Area reference
• Cost center.
• Expense head.
• Consumer code (in case of subcontracting).
• Signatures of the authorized person.
Issuance records are updated in Store System in use at the
site (This may be in-house built software NStore or ACCPAC
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Icon) after issue of material.
Any excess material left after completion of specific work is
returned to Store on Site Return Note (SRN) duly filled
bearing the signatures of the authorized person.
Stores personnel check the material, segregate it and
update record for all returned materials.
For further detail, refer to
COMM-STORES-SOP-01 Identification traceability indenting
COMM-STORES-SOP-01 Material movement
COMM-STORES-SOP-01Physical inventory
COMM-STORES-MS-01 Handling of Descon Material
9.2 Client Material Handling
Client material deliveries are monitored by Planning and
FEDC. The receipt of the material can be either as shipments
accompanied with their packing lists or the material could be
issued from Client Warehouse at the site. In either case after
receipt of the material and its acceptance, its status is
updated in the MMS software. Standard procedure for
Material loading, receiving, inspection, stacking, issuance
and return as in use for Store management are employed.
For details refer to COMM-STORES-MS-02 Handling of
Customer Material
9.3 Reconciliation Reports
Material that is handled at site either through Store or
Warehouse is reconciled at completion of the project. The
Warehouse Incharge and the Central
Material Controller are responsible to carry out the
reconciliation. Materials left over from Client Warehouse are
returned to client through Material return
Note (MRN) and a final material reconciliation report is
issued by client declaring that there is no variance regarding
material supplied.
Similarly material handled through Store is reconciled
against issuance record and Physical inventory is carried out
in order to demobilize / shifting of material at the completion
of project. The Stores incharge and the Central
Material Controller are responsible for this reconciliation.
9.4 Disposal of Surplus Material
Any unserviceable, surplus and scrap materials / equipment
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is disposed off from the inventory and only serviceable /
useable items are kept in stocks.
Disposing off surplus material is not kept pending until the
demobilization stage as it is a continuous process, and must
go on during the entire length of the project so that
demobilization phase is smooth and prompt.
Incharge site store initiates the Disposal and Write Off
Request, duly signed by the Project Manager after the
material has been inspected by the concerned
representative from QC/E&P/PP&A and is declared scrap/
surplus, and then forwards it to Head Office for obtaining
approval of the competent authority.
Write-off Note is prepared and processed for each lot of
material that is disposed.

CHAPTER- 10
Monitoring of Progress
All progress measurement at site is dependent on the
information collected from the daily schedule and time
sheets (DSTS) This is then processed in DPMS and GDMS to
generate progress and efficiency reports. For the overall
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scheme of progress measurement please refer to flow chart
for progress monitoring provided as Attachment 10.1
10.1 Concept of Earned man-hours
As defined earlier in chapter 2 earned man-hour is the
amount of work executed in terms of standard man-hours.
At proposal stage total man-hours are calculated by
multiplying the CCTR quantity with unit man-hours and
difficulty factor. The unit man-hours multiplied by the
difficulty factor used at the proposal stage are frozen after
award of contract and are called standard man-hours per
unit.
As an example we assume that against CCTR 23120 CS pipe
fabrication 02 man-hours are required for 01 DI of welding.
There is total 2000 DI Welding.
So the total budgeted man-hours to achieve 100% progress
on CCTR 23120 are 4000. At any stage of the project if 500
DI are earned using 1200 actual man-hours. The earned
man-hours are therefore calculated as Earned Quantity
X Standard man-hours per unit i.e. 500 X 2 = 1000. The
achieved progress is thus (Earned man-hours / total
budgeted man-hours)X100) i.e. (1000 /
4000) X100 = 25%. Efficiency is calculated by dividing
Earned man-hours by actual man-hours i.e 1000/1200 =
0.83.
DPMS has the capability to calculate and report progress and
efficiency at Project, Area, Discipline and CCTR level.
10.2 Estimation of Progress
The supervisors report actual progress / quantities and man-
hours daily by entering it on their DSTS. Area scheduler shall
ensure that the daily progress, as received on DSTS, is
checked and accurately entered in the DPMS system.
DPMS calculates achieved progress on the basis of earned
man-hours. This also enables the area schedulers, discipline
engineers and incharges to monitor the daily targets /
planned quantities with actual achieved quantities and
planned man-hours with actual man-hours.
The Time Office enters actual Man-hours from DSTS into
GDMS system.
Actual Man-hours are then imported into DPMS from GDMS.
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DPMS also calculates the efficiency by comparing earned
and actual man-hours.
10.3 Progress and Efficiency Control
- Following Progress and efficiency reports are generated
from DPMS.
• Project Top Sheet PMS/FRM-04 (Overall)
• Project Top Sheet PMS/FRM-05 (Discipline wise)
• Man-hours Analysis Report PMS/FRM-06 (This period/To-
date)
• Consumables Analysis Report PMS/FRM-07 (For Mech.
Projects)
• Direct Material Analysis Report PMS/FRM-08 (For Civil
Projects)
- Reports prepared from other packages are
• Bottlenecks Report PMS/FRM-13
• Daily Diary PMS/FRM-12
These reports formats are attached as Attachments 10.2
to 10.9
Site Manager, Planning & FEDC Manager, Construction
Manager and
Discipline In-charges analyze these reports. Corrective
actions are initiated on the basis of these reports so that
contractual targets are met without affecting the cost and
budgeted margins.
10.4 Progress up-dating
Achieved progress in terms of %age in P3 Schedule is
updated at the end of every month as per report generated
from DPMS called ‘ report to update P3’. After progress-
updating P3 reschedules activities that could not be started
on time based on linkage with predecessor activities. This
updated plan is compared with riginal/Target Plan to see
whether contractual milestone dates are shifted or not. In
case these have shifted, the reasons are discussed and if
decided the targets are restored back to the contractual
dates by revising strategy. In case the change in schedule is
attributable to client, cost impact is calculated by the cost
engineer and intimated to Contracts Engineer for
preparation of claim. In case the reasons are attributable to
Descon, then cost impact and revised Cost at Completion
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are calculated. In case there is a change in budgeted project
margin Head Office is approached for approval with
supporting documentation explaining the reasons.
This plan after incorporating achieved progress and
required.

CHAPTER- 11
Construction Works
The purpose of all the Pre-mobilization Planning and
Mobilization activities is to ensure that once direct work
starts it proceeds smoothly at site. Successful completion of
these activities does not mean that there can be a drop in
vigilance when construction activities have started and
resources are being utilized. The utilization of all the
resources has to be controlled and accurately monitored on
a day-to-day basis. Resources may be redeployed as found
appropriate in order to stay on schedule.
The Site Manager has the ultimate responsibility for ensuring
achievement of the project schedule and objectives within
the planned resources.
Responsibilities of all other site functionaries have been
defined in Chapter 6 Organization.
In this chapter the process of exercising control over work
execution shall be described. The following topics are
covered.
1. Scheduling of work
2. Responsibility for execution
3. Reporting of progress
4. Quality assurance
5. Health Safety and Environment
6. Civil works
7. Mechanical works
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8. E&I works
9. Equipment and Plant
10. Handing over
11.1 Scheduling of work
The activity of planning up-to development of the 3 month
and 4 week look ahead plans has been described in chapter
7. The next step is level 4 planning
In order to have close interaction of the personnel
responsible for execution and scheduling these two
functions viz. Area Scheduler and Discipline
Supervisor is clubbed together under common supervision at
the Discipline Engineer level. The Discipline Engineers in
consultation with the Discipline
In-charges decide the weekly targets to be achieved by each
Discipline
Supervisor in order to meet the targets laid out in the 4
week look ahead plan.
The area scheduler carries out level 4 planning for each
Discipline Supervisor based on availability of manpower,
work front availability, and the previous periods progress.
This is used to print the DSTS for each supervisor.
Target for completion of this activity is set so that the DSTS
is available to supervision first thing in the morning.
11.2 Responsibility for execution
The Discipline Supervisor utilizes the work force available to
him to carry out the work detailed in the DSTS. He decides
what each individual will do during the day and arranges to
have the necessary resources available for each member of
the workforce to carry out the job. He coordinates with the
area material coordinator to have all the required material
available at the location well in time for its actual
requirement. Equipment requirements are also arranged
likewise. It is the responsibility of the Discipline Supervisor to
ensure that work being done is up to quality standards and
that the workforce is properly utilized. He has to ensure that
workforce is familiar with the work methods and the quality
and safety requirements. In case the work requires any
permits, these must be arranged in advance so that there is
no idle time on their account.
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The Discipline Engineer keeps track of the progress being
achieved by the workforce of all the supervisors in his area
pf responsibility. He ensures that resources and work
support elements are available to them for carrying out the
jobs scheduled.
The Discipline Engineer and The Discipline Supervisor shall
both ensure that work being performed is as per DSTS. In
case the client desires the inclusion of work that is out of the
original scope than this shall be addressed through the
system designed for handling extra work. It is described in
detail in chapter 12. This shall ensure that the extra work is
identified and tracked separately and ultimately invoiced
separately from the original scope. Failure to segregate the
extra work will result in reporting of lower efficiency for
normal work as well as loss of revenue and depletion of
margins for the company.
11.3 Reporting of progress.
At the end of the work period the Discipline Supervisor fills
out the progress achieved on each phylum of the drawings
listed on the DSTS as a percentage figure. He also enters the
attendance of the work force by indicating the number of
hours that each individual has worked and the relevant cost
centre.
This information is later entered by the Area Schedulers into
the DPMS system and is used to update progress. The man-
hours indicated in the attendance part are entered from the
DSTS into GDMS by the time keeper.
This information of CCTR wise man-hours is electronically
transferred into
DPMS and is used to determine work efficiency by
comparing earned man-hours and actual man-hours
payable. The flow chart for DSTS is available as
The progress and efficiency reports produced from the
system are referred by the Discipline Engineers, In-charges
and the Site Manager. Therefore it is important for the
supervisor to fill out the progress and the attendance
accurately.
11.4 Quality, health, safety and environment (QHSE)
General
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Quality, health, safety, and the environment management is
not only Descon's top priority but it is our way of life in
meeting external as well as internal business commitments.
Descon operates at all of its establishments and projects
through well-integrated ISO 9001:2000 certified QHSE
systems.
System is based on proven policies, procedures, and
methods statements that meet industrial standards policies
such as OHSA, ASME, and CE certification. The QHSE
department serves as the domain expert to implement the
company’s Quality, Health, Safety and Environment policy
through the line managers and supervisors at all projects
meeting project performance objectives. The complete
awareness of our core and operating values is ensured
through a comprehensive program of training and
knowledge dissemination to staff before and during project
execution.
11.4.1 Quality Management System
The Company operates it’s quality management system on
the basis of ISO
9001:2000 standards. DESCON’s Quality Management
System documentation
Hierarchy is illustrated in the figure below;
Project Quality and HSE Plans are prepared, specific to a
particular project.
These Plans regulates the working of a project, supported
and supplemented
by the Method Statements.
LEVEL 1 – QUALITY MANUAL
LEVEL 2 – STANDARD OPERATING
PROCEDURES
LEVEL 3 – METHOD STATEMENTS / P0LICIES
LEVEL 4 – FORMATS/FORMS

Note:
A procedure describes how a process is performed, while a
Method Statement describes how a task is performed.
Method Statements tend to be more detailed than a
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procedure.
Records are the filled forms. Records document how the
tasks were actually done.
11.4.2 QHSE Planning
QHSE Planning starts right from bidding stage, QHSE
department coordinates with proposal manager in the study
of ITT/ITB especially with regard to the quality aspect in the
scope of work and preparation of QHSE documents
accordingly for order acquisition team to make profitable
project-winning proposals.
QHSE department is responsible for overseeing the
preparation of quality plans, inspection and testing
procedures, and HSE Plan in the light of project
specifications/requirements and their implementation at
work sites through adequate deployment of resources
pertinent to quality control functions.
QHSE head office provides all resources considered
necessary to implement and maintain the quality of
product/service. This includes infrastructure needed to
achieve conformity to product requirements (building,
working space & associated facilities, deployment of trained
& experienced QHSE manpower, process equipment,
transport or communication and working environment).
Head QHSE shall ensure selection of QHSE manpower and
other resources in the view of all project requirements and
coordinate with PM/SM for all
Budgetary deviations.
11.4.3 Project Quality Plan (PQP)
Based on the historic data and projects know how QHSE
department prepares Standard Project Quality Plan
(PQP/P#XXXX). Current systems and procedures information
pertaining to BA’s and BSD’s operations will be obtained for
developing the standard PQP. Revision to the Standard PQP
document will be made every year for keeping it inline with
the BA’s/BSD’s operations, however minor changes can be
made whenever deem necessary.
- Standard copy of PQP will be made available on net for
ready reference of BA’s/BSD’s. Proposals may request QHSE
to tailor PQP for making it fit for purpose inline with tender
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specifications.
- On award of all projects nominated Project team will
prepare project specific PQP using the standard documents
submitted to Customers earlier along with the proposals.
Project Contract specification will be reviewed to address the
requirements in this document comprehensively. SM to
advise respective project team members about the project
scope so that they can develop documents and incorporate
the same in the PQP.
Revision number to the document will be changed and
approval of SM and I/C QA&QC will be recorded on the front
page of the document.
- Appreciating the fact that PQP (project specific) is a live
document and the changes in departmental documents,
execution philosophy and contract specifications must be
done at the start of every month, to achieve conformity
while implementation. I/C QA&QC site and SM will send a
copy of latest PQP to Head QA&QC on quarterly basis. PQP
copy may be requested at any point during the course of the
project by Head
BA’s/BSD’s to conduct Audits. A new revision number must
be issued for all reviews and modifications to the document.
- The latest revision of PQP should be made a part of project
wind-up report.
Followings shall be the attachments of the project specific
PQP. These attachments may vary from project to project:
- List of Quality Inspection Plans
- Project Organization Chart
- Job Descriptions
- Mobilization Plan
- Master Schedule/ Direct work execution Plan
- Manpower histogram
- Master Schedule of QMS and Internal Audits
- Master Schedule of Project Assessment Audits
- List of Method Statements
- List of Contract Specifications
- List of IMTE
- List of Standard Operating Procedures
- List of Codes and Standards
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- Quality and HSE Policies
- Rigging Plans
- Material Requirement Plan (MRP)
11.4.4 HSE Plan
A Health, Safety and Environment Plan for the project shall
be developed and implemented. The implementation of the
HSE Plan will be monitored through regular HSE audits. HSE
is a line function; every one is responsible for the HSE issues
at site.
The HSE Department shall conduct initial orientation of all
individual before such an individual takes over responsibility.
Under this program, general HSE rules and regulations shall
be explained to all personnel who shall be made aware of all
potential hazards involved in their job along with ways to
protect themselves as well as their environment.
Various types of HSE courses shall be arranged to inculcate
HSE awareness amongst every employee and to make him
“HSE conscious”. Employees shall also be provided with HSE
literature, brochures, HSE rules, etc. to enhance their
knowledge and confidence in their jobs. Regular HSE Tool
box talks shall be conducted by line Supervisors and
Incharge Site HSE, identifying site hazards and to avoid the
same using safe work practices.
Descon commitment to prevent harm to people,
environment and community can be viewed from the HSE
Injures statistics and a professional implementation of HSE
plan at site.
To supplement this project specific HSE Plan, following
SOP/MS will be applied:
Refer SOP:
HSE/SOP-03 - Reporting and Investigation
Refer MS:
HSE/MS-05 - Safe work practices
11.4.5 Quality Inspection Plan (QIP)
Quality Inspection Plans are developed for all Inspection &
Test to be performed for project core activities. All
specific/references, contract specifications, codes, standards
and formats references are detailed in this document.
Inspection and Test co-ordination and interfaces of all
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parties involved are defined and implemented through QIP
as a guiding document for Quality
Control activities.
Responsibility of QIP preparation lies with project QA&QC
Incharge and on development the same should be verified &
approved by all contractual parties.
The project core team as well as Head Office QHSE
functionaries will gauge implementation effectiveness.
Deficiencies shall be highlighted to the project team for
corrective and preventive actions.
All Inspections & Test records on approved formats as
referred in QIP shall be maintained by I/C QA&QC at site for
final quality dossier submission.
11.4.6 Receiving Inspection
In determining the amount and nature of receiving
inspection, consideration has been given to the amount of
control exercised at Head Office, sites, works and vendor
premises to ensure conformance and record evidence.
Refer SOP:
QA&QC/MS-01 - Receiving Inspection
This is highly appreciated control point for Descon. All pre-
requisite checks are ensured either it is a Descon supplied
material/product or a vendor /client scope. The primary
interfaces in between all functionaries have been identified
in respective SOP and MS of departments.
11.4.7 Suppliers Pre-qualification
In order to ensure that purchased product conforms to
specified requirements, assistance is provided to Subco &
Procurement department for the technical evaluation of
Suppliers (sub-contractors/vendors) as per laid down
policies/procedures.
Refer SOP/MS:
Comm.-Proc/MS-02 - Pre-Qualification of Suppliers
Comm.-Proc/MS-11 – Sourcing / Pre-Qualification of Sub-
contractors
Comm.-Proc/SOP-04 - Subcontracting
11.4.8 Welding
Welding Procedure Qualification
A welding procedure is qualified according to ASME IX or
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other applicable code. Essential, supplementary essential
and non-essential variables are noted on Welding Procedure
Specification (WPS) formats.
If results are in accordance with the applicable codes then
Procedure
Qualification Record is prepared by welding engineer.
Refer MS:
QA&QC/M/MS-07 - Welding Procedure Qualification
Welder / Welding Operator Qualification Test (WQT)
Welders/ welding operator qualification test is a prerequisite
for all welders to commence welding works at any project /
works location. Welder performance qualification tests shall
only be carried out by employing approved WPS to
determine the ability of welder/ welding operator to produce
sound welds.
Refer MS:
QA&QC/M/MS-17 - Welders/Welding Operator Qualification
Test (WQT)
11.4.9 Customer Satisfaction
Site Management ensures that the customer requirements
are determined and met during the execution of the project.
DESCON Engineering uses a customer feed back form
(QA&QC/FRM-15) to obtain information on how our
customers view our performance versus their expectations.
By keeping in view the importance of the customer
complaints, this issue is a regular feature of the agenda of
weekly meetings. Refer SOP:
QA&QC/SOP-07 - Measuring Customer Satisfaction

11.4.10 Internal Audit

Scheduled Internal Quality Audits will be conducted for all
departments included in PQP. These schedules will be
planned by QA&QC at Site. The auditors for ensuring
effectiveness of the system confirm corrective actions taken
on the system non-conformities found during previous
audits. If required, follow up audits will be undertaken to
strike out non-conformities that will crop up in the fresh
audit. Only QA&QC has the authority to close the system
non-conformities. Head/Incharge BA/BSD will conduct Project
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Assessment Audit to check the health of the processes at
site. Refer SOP:
QA&QC/SOP-02 - Internal Quality Audits
11.4.11 Documents Control
All QMS documents will be controlled and issued as per the
following SOP:
Control of Quality Documents QA&QC/SOP-01
QA&QC Department ensures that updated quality
management system documents are in use.
11.4.12 Control of Nonconforming Products
To prevent the customer from inadvertently receiving
nonconforming products and to avoid unnecessary cost of
further processing, nonconforming products are handled
through a written procedure. Refer SOP:
QA&QC/SOP-04 - Control of Nonconforming Products
QA&QC/MS-02 - Segregation of Non-conforming items
For the analysis of the statistical quality data systematically,
for effective process control and improvement in quality of
services / products delivered to the customer, procedure
mentioned below takes care of this aspect. Refer MS:
QA&QC/MS-04 - Measuring Cost of Quality (COQ)
In charge QA&QC Site shall be responsible for issuance,
monitoring and
Maintenance of record of CAR/NCR reports and Cost of
Quality.
11.4.13 Control of Quality Records
Maintenance of quality records is the responsibility of the
concerned departments of DESCON.Refer SOP:
QA&QC/SOP-10 - Quality Records
11.5 Civil Works
The civil construction shall be carried out according to
Project Quality Plans
(PQPs) / Project Execution Plans (PEP), Work Instructions,
Method Statements and Execution Manual.
The PQP / PEP shall be project specific and prepared keeping
in view the specific site and client requirements. Project
Quality Plan / Project Execution
Plan is made for every active site with appropriate
references to the relevant work instructions.
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The Project / Site Manager is the owner of the relevant PQP /
PEP and makes revisions, whenever required. The revisions
are controlled by QA.
In general the following activities are involved at civil
construction sites: The applicable generic Method
Statements are indicated against each activity.
• Excavation.IP-MS-01
• BackfillingIP-MS-02
• General Fill.IP-MS-03
• Steel Reinforcement. IP-MS-04
• Formwork IP-MS-05
• Structural Concrete. IP-MS-06
• Piling Work. IP-MS-07
• Slip Forming. IP-MS-08
• Grouting Works. IP-MS-09
• Pre-Cast Concrete. IP-MS-10
• Masonry Works. IP-MS-11
• Cement Plaster. IP-MS-12
• Flooring. IP-MS-13
• Tiling IP-MS-14
• Painting / Protective Coating. IP-MS-15
• Water Proofing. IP-MS-16
• R.C.C. Pipe. IP-MS-17
• Concrete Pavements and Road works. IP-MS-18
For other project specific activities, project specific Method
Statements are prepared and shall be followed.
11.6 Mechanical Works
The mechanical construction shall be carried out according
to Project Quality
Plans (PQPs) / Project Execution Plans (PEPs), Work
Instructions and Execution Manual.
In general the following activities are involved at mechanical
construction sites. The applicable generic Method
Statements are indicated against each type of activity.
• Erection of Stationary Equipment PC/M/MS/01
• Erection of Rotary Equipment.PC/M/MS/03
• Above Ground Piping. PC/M/MS/04
• Chemical Cleaning and Passivation. PC/M/MS/05
• Heat Treatment. PC/M/MS/07
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• Field Testing of Piping SystemPC/M/MS/08
• Sand Blasting & Prime Coating – PC/M/MS/10
• Hot Insulation of Equipment and & Piping PC/M/MS-11
For other project specific activities, project specific Method
Statements are prepared and are to be followed.
11.7 E&I Works
The E&I construction shall be carried out according to Project
Quality Plans
(PQPs) / Project Execution Plans (PEP), Work Instructions and
Execution Manual.
In general the following E&I activities are involved
construction sites: The applicable generic Method
Statements are indicated against each type of activity.
• Field Instruments Installation PC/EI/MS-01
• Instrument air piping and tubing installation PC/EI/MS-02
• Instrumentation cabling and Junction boxes PC/EI/MS-03
• Testing and Commissioning of Instrumentation works
PC/EI/MS-04
• Instruments calibration PC/EI/MS-05
• Lighting and small power systems installation PC/EI/MS-06
• Excavation and backfilling of cable trenches PC/EI/MS-07
• Cable laying and termination PC/EI/MS-08
• Cable splicing, glanding and termination PC/EI/MS-09
• Cable tray, ladder and rack installation PC/EI/MS-10
• Installation of switchyard equipment PC/EI/MS-11
• Earthing system installation PC/EI/MS-12
• DCS installation PC/EI/MS-13
• LT switchgear and MCC panel installation PC/EI/MS-14
• Power transformer installation PC/EI/MS-15
For other project specific activities, project specific Method
Statements are prepared and are to be followed.
11.8 Equipment and Plant
All equipment and plant at the site is under the control of I/C
E&P. This section is responsible for its upkeep and proper
deployment. All the equipment operating staff such as
equipment operators and support staff such as riggers and
mechanics report to the I/C E&P. When equipment arrives at
site it is jointly inspected by I/C E&P and I/C QA QC. If there
are any third party tests and certifications required these
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are arranged by I/C E&P. Record of equipment certification
and operator certification are also maintained by this group.
11.8.1 Deployment
Planning and FEDC Manager draws up a guideline for
deployment of equipment along with the 4 week look ahead
Plan. This is provided to the Discipline Incharges and also to
I/C E&P. The day-to-day equipment deployment is decided
by the I/C E&P based on the equipment requests received
from Discipline Engineers. In case of demand for the same
piece of equipment from a number of users I/ E&P discuses
this with the Planning and
FEDC Manager and then assigns the equipment based on
over all priority for the site.
11.8.2 Utilization
I/C E&P keeps track of equipment usage at the site and
arranges to have it redeployed during the day if it is not
being properly utilized or is more urgently required at
another location. The Discipline Engineers also keep an eye
on the proper utilization of equipment while it is assigned to
their area of responsibility and return it for use at some
other locations when it is not required any more.
A utilization card is maintained for each piece of equipment
at the site. This has provision for recording its daily
assignment CCTR wise and supervisor wise as well as the
number of hours it was utilized during the day. Idle time and
time under maintenance are also recorded on these cards.
The I/C E&P is responsible for the accurate posting of
equipment hours on these cards.
Information from these cards is fed into the GDES system.
Similarly data of equipment wise maintenance, POL usage,
operator salaries and other costs is combined to come up
with the operating cost of the equipment.
11.8.3 Maintenance
The I/C E&P at site prepare a preventive maintenance
schedule at site and has all the equipment maintained
accordingly. For further details please refer to the following
documents Hiring of Rental Equipment E&P/MS-02
Equipment Planning E&P/SOP-02 Standard organization of
E&P at sites E&P/SOP-04
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Equipment Maintenance E&P/MS-02
11.9 Completion and Handing over
As work progresses beyond 60% completion it is desirable to
change over to a system or loop based division from the
point of view of handing over to the client. Test documents
and quality dossiers shall be compiled for each system and
given to the client. Punch lists are prepared for any
deficiencies that may be observed and are attended. Client’s
acceptance is recorded as per agreed procedure.
CHAPTER-12
Handling of Extra Work
12.1 Introduction
It is desirable to have a defined procedure for handling of
extra work as its proper tracking and invoicing can have a
significant impact on the cash flow and overall revenue of
the project. Properly handled extra work should be more
profitable than the regular work as it is usually carried out
without any significant increase in indirect costs.
12.2 Definition of extra work
When actual work quantities are different from those
specified in the original BOQ, the increase or decrease can
be handled through already laid down procedures. Vigilance
is however required to keep accurate track of the quantity of
work actually executed and to compare it with original
quantities.
This procedure is for handling of extra work other than
change in quantities of original BOQ. The extra work can
come up for the following reasons
• When fresh items are added to the BOQ.
• Changes in design requiring addition of new items
• Change in already completed work
• Changes in scope on receipt of technical clarifications or
revision of specifications issued by the client
• Changes that have to be made due to erection difficulties.
• Change orders that are issued by the client during the
course of the project.
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12.3 Identification
• Discipline Supervisor, Area Scheduler, Discipline Engineer,
Discipline In charge, Planning Engineer, FEDC engineer,
Quantity Surveyor should all be made fully familiar with the
original scope of work so that they can identify extra work
from normal work.
• Sometimes execution staff agrees to carry out extra work
on verbal instruction from the client. This practice is to be
discontinued as it makes recognition difficult for subsequent
quantification and billing. Only written site instructions are
to be accepted.
• The site instruction would be required to carry out any
work that is outside the original scope.

12.4 Handling of extra work

• On identification of the extra work requirement the
discipline supervisor or area scheduler or any other senior
member of the project construction team shall fill out an
Extra Work form. The work to be done shall be described
therein. Copies of any supporting documents such as client’s
site instructions shall be attached with it.
• The filled out Extra Work form shall be given to the
Planning and FEDC manager. It shall be entered in the Extra
Work Register maintained by FEDC, given a serial number
and analyzed to quantify the scope.
• The Client shall be requested to issue a formal variation
order for the extra work through a change proposal. This
change proposal shall define the scope and propose a
pricing basis.
• Client can respond to this in three ways.
1. Accept that the change proposal and issue a variation
order
2. Ask Descon to carry out the instruction while the pricing
basis is being finalized
3. Withdraw the site instruction or revision that is causing
the cost impact
• The Planning and FEDC manager shall keep the Site
Manager informed about the extent and scope of all Extra
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Work request forms received and shall obtain written
approval of the Site Manager for Works exceeding (one)
days duration
• In case acceptance of Extra Work request is likely to have
a significant impact on the cost of the project or on the
overall project completion schedule then the Site Manager
shall obtain written approval from the BA head.
• The FEDC Engineer shall analyze the change, decide how it
is to be carried out, and get it estimated by QS for
determination of its BOQ, BOM and resource requirement.
Standard man-hours for each type of activity involved in the
extra work shall be used for coming up with the man-hours
required. The Planning Engineer shall ensure that the
planned man-hours are entered into PCS against the cost
center for this extra work and area scheduler would ensure
that man-hours consumed on the extra works are booked
against extra works cost center.
Flow diagram for handling of extra work is provided .
12.5 Monitoring of extra work
Separate cost centres should be allotted for Extra Work of
each discipline in each area. These cost centres shall be
intimated to all area schedulers, discipline supervisors
through the respective Area/Discipline in-charges. All efforts
shall be made to ensure that execution and reporting of
extra work shall be through the DSTS system. In case of
exigencies when extra work is taken up without waiting for
its formal inclusion in the printed DSTS then the Discipline
Supervisor shall enter it on the DSTS by hand. Discipline
Supervisors are responsible for correct allocation of resource
utilization. The Area Scheduler and Discipline Engineers shall
cross check the filled out DSTS sheet to ensure that
resources utilized on extra work are allocated correctly.
Progress and work efficiency of extra work shall be
monitored using the same quantities and standard man-
hours determined by the QS in the estimation phase.
12.6 Pricing of extra work
• The FEDC engineer shall send the estimate of resource
requirement prepared by the QS to the Contracts engineer
for coming up with a selling price.
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• The Contracts engineer shall come up with a selling price
for each item of extra work based on the terms agreed with
the client.
1. Descon would prefer the extra work to be priced on a cost
plus percentage basis.
2. Clients usually prefer item rates to be applied to the extra
work.
3. Client could also desire a lump sum rate to be agreed for
the extra work.
• The rate to be adopted for pricing of resources should be
agreed with the client in the initial stages of the project if it
is not already specified in the contract.
• Indirect costs shall be included in the price based on the
formula agreed with the client.
• It is desirable that price estimate for the extra work shall
be submitted to the client before the work is executed. In
case this is not practicable then the estimate shall be
conveyed to the client as early as possible.
• Invoice for the extra work should be submitted soon after
work completion along with supporting documents such as
copies of intimation to client/client acceptance, etc.
1) Extra Work Request Form Attachment 12.12) Extra Work
Register Attachment 12.2 3) Flow Chart for Extra Work
Attachment 12.3

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